Bled is located on the southern foot of the Karawanks mountain range near the border with Austria, about 50 km (31 mi) northwest of the state capital Ljubljana. South of Lake Bled are the densely forested Pokljuka and Jelovica plateaus, the easternmost parts of the Julian Alps. Here the Sava Bohinjka and the parallel Bohinj Railway lead up to the Bohinj basin, Lake Bohinj, and the Triglav massif.

A number of rises (Grad 599 m, Straža 646 m, Kozarca 558 m, Osojnica 756 m, and Ravnica 729 m) separate the localities of Bled around the lake, the former villages of Grad, Mlino, Rečica, Zagorice, and Želeče.

The lake is 2.12 kilometres (1.32 mi) long and 0.5 to 1 kilometre (0.31 to 0.62 mi) wide. In summer, the surface water reaches 25 °C (77 °F) and retains a temperature up to 18 °C (64 °F) until autumn. As such, it is suitable for swimming. In colder winters it freezes and is used for ice skating.

There is a thermal spring (23 °C or 73 °F) near the lake, next to the Bled Fault. Its water is used in indoor pools in two hotels.