The Valley of Fire derives its name from red sandstone formations, formed from great shifting sand dunes during the age of dinosaurs, 150 million years ago. Complex uplifting and faulting of the region, followed by extensive erosion, have created the present landscape. Other important rock formations include limestones, shales, and conglomerates. Prehistoric users of the Valley of Fire included the Basket Maker people and later the Anasazi Pueblo farmers from the nearby fertile Moapa Valley. Fine examples of rock art left by these ancient peoples can be found at several sites within the park.

The area plant community is dominated by widely spaced creosote bush, burro bush, and brittle bush. Several cactus species, including beavertail and cholla, and also common. The springtime bloom of such plants as the desert marigold, indigo bush, and desert mallow are often spectacular along park roads. Resident birds include the raven, house finch, sage sparrow, and roadrunner. Many migrant birds also pass through the park. Most desert animals are nocturnal and not frequently seen by the passing motorist. Many species of lizards and snakes are common in the park, as well as the coyote, kit fox, spotted skunk, black tailed jackrabbit, and antelope ground squirrel. The desert tortoise is a rare species and is protected by state law.