Osage State Fishing Lake lies in a small, pleasant valley of the Osage Cuestas. Around the lake is a riparian woodland, and the upland is native bluestem prairie.  The best wildlife habitat is on the east side of the lake.

In fall and spring the water attracts migrating waterfowl including snow geese, Canada geese, mallards, pintails, common mergansers, and common goldeneyes. On occasion a migrating osprey is seen plunging, talons first, into the lake for fish. Eastern screech-owls, great horned owls, northern flickers, hairy woodpeckers, eastern wood-pewees, and white-breasted nuthatches can be found in the woods.

In summer search the fields and prairies for eastern meadowlarks, mourning doves, northern bobwhite quail, grasshopper sparrows, scissor-tailed flycatchers, and both eastern and western kingbirds. In the nesting season listen for the boom of diving male nighthawks courting their mates. Common around the lake are muskrats and beavers. Watch for white-tailed deer and coyotes year-round.