It is geologically related to the Finger Lakes, as they were both carved by glaciers, but is not counted among them. One difference is that Otsego Lake is situated at a higher elevation () than the Finger Lakes (approximately ). Another difference is the Finger Lakes are part of the Lake Ontario watershed, and Otsego is part of the Susquehanna River watershed. The lake is known for its deepness as well as the shallow littoral zone present around the majority of the lake. The shallow areas correlate to sediments deposited from tributaries that enter the lake. This is best shown at the north end of the lake where Trout Brook, Cripple Creek, and Hayden Creek enter the lake. It is also present in Hyde Bay where Shadow Brook enters, and at the south end of the lake between where Willow Brook enters the lake and Brookwood Point.