The Caspian Sea is the largest inland body of water in the world by area and accounts for 40–44% of the total lake waters of the world, and covers an area larger than Germany. The coastlines of the Caspian are shared by Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan. The Caspian is divided into three distinct physical regions: the Northern, Middle, and Southern Caspian. The Northern–Middle boundary is the Mangyshlak Threshold, which runs through Chechen Island and Cape Tiub-Karagan. The Middle–Southern boundary is the Apsheron Threshold, a sill of tectonic origin between the Eurasian continent and an oceanic remnant, that runs through Zhiloi Island and Cape Kuuli. The Garabogazköl Bay is the saline eastern inlet of the Caspian, which is part of Turkmenistan and at times has been a lake in its own right due to the isthmus that cuts it off from the Caspian.
Differences between the three regions are dramatic. The Northern Caspian only includes the Caspian shelf, and is very shallow; it accounts for less than 1% of the total water volume with an average depth of only . The sea noticeably drops off towards the Middle Caspian, where the average depth is . The Southern Caspian is the deepest, with oceanic depths of over , greatly exceeding the depth of other regional seas, such as the Persian Gulf. The Middle and Southern Caspian account for 33% and 66% of the total water volume, respectively. The northern portion of the Caspian Sea typically freezes in the winter, and in the coldest winters ice forms in the south as well.
Over 130 rivers provide inflow to the Caspian, the Volga River being the largest. A second affluent, the Ural River, flows in from the north, and the Kura River from the west. In the past, the Amu Darya (Oxus) of Central Asia in the east often changed course to empty into the Caspian through a now-desiccated riverbed called the Uzboy River, as did the Syr Darya farther north. The Caspian has several small islands, primarily located in the north with a collective land area of roughly . Adjacent to the North Caspian is the Caspian Depression, a low-lying region  below sea level. The Central Asian steppes stretch across the northeast coast, while the Caucasus mountains hug the western shore. The biomes to both the north and east are characterized by cold, continental deserts. Conversely, the climate to the southwest and south are generally warm with uneven elevation due to a mix of highlands and mountain ranges; the drastic changes in climate alongside the Caspian have led to a great deal of biodiversity in the region.
The Caspian Sea has numerous islands near the coasts, but none in the deeper parts of the sea. Ogurja Ada is the largest island. The island is  long, with gazelles roaming freely on it. In the North Caspian, the majority of the islands are small and uninhabited, like the Tyuleniy Archipelago, an Important Bird Area (IBA).