The Eagle Bay is 3-6 miles wide and about 18 miles long. It branches into two main bays, both with a few coves. The lowland strips along the bay are very limited and the precipitous mountain slopes fall steep into the sea in most places.

The mountains are indented with short valleys and gorges and the bay is deep except for a sand reef, protruding from the spit of land called Langanes. Just off this spit of land and in the cove Reykjafiord are rich algae grounds, which might be ideal for lime meal production.