NY 240 begins at an intersection with NY 242 in the town of Ellicottville along the western leg of a railroad wye near Beaver Meadows Creek. NY 240 proceeds northward alongside Beaver Meadows Creek co-designated as County Route 32 (CR 32; West Valley Road). The routes proceed northward through Ellicottville as a two-lane roadway through dense forestry, bending northward along the creek and a nearby railroad track. The dense forestry remains for several miles, before bending northeast into an intersection with Fancy Tract Road. NY 240 and CR 32 continue northeast as the dense woods retreat for residences before bending northwest away from Beaver Meadows Creek. After bending northward once more, the routes cross through large fields and past several houses along West Valley Road.