A honeypot during the summer months, Lealholm is located midway along the Esk valley between the villages of Glaisdale, to the east and Danby to the west. Lealholm is on the route of the Esk valley railway line, which runs from Whitby to Middlesbrough, and is served by Lealholm railway station. A large part of the community is involved in farming due to the high fertility of the slopes in Eskdale, whilst other members of the community are involved in tourism or commute to industrial centres such as Middlesbrough. This led to the economy of the area being hard hit by the 2001 UK foot and mouth crisis.