Native food gatherers used the low tide mudflats as a source for clams, and a midden on the north side indicates that a large dwelling once stood there. In the Squamish language, the name is Ch'ekxwa'7lech, meaning "gets dry at times". Settlers also built cabins around the lake, which were all removed between 1913 and 1916 during construction of the causeway. The lake was created in 1916 by the construction of the Stanley Park causeway; until then, Lost Lagoon was a shallow part of Coal Harbour, which itself is an extension of Burrard Inlet.