The village lies in a gently rolling moraine landscape, dominated by lakes of glacial origin. Among these are Cedar Lake, north of the village center, and Deep Lake, to the east. There are several smaller lakes and ponds, along with a diminishing complement of wetlands. The lakes and ponds have been important in Lake Villa's historic tourist industry, and over the years led to a small ice industry.
Drainage is ultimately to the Des Plaines and Fox Rivers.
Limit of 10hp motor