Flora: The site is set amongst banksia jarrah woodlands, Eucalyptus decipiens woodlands and coastal shrublands. Natural Consulting Management Services (2019), surveyed 109 flora species, 82 of which were native species and 27 being introduced, in the nearby area. Eleven priority flora species including Hakea oligoneura and Hibbertia spicata sp. leptotheca have been identified in Preston. Fauna: Preston Beach serves as home to hundreds of migrating birds and water birds, including the endangered hooded plover (Thinornis rubricollis). Carnaby's Cockatoo, recognised as endangered under the EPBC Act (1999), utilises the tuart trees for roosting and nearby banksia woodlands for foraging. The vulnerable western ringtail possum (Pseudocheirus occidentalis) has been sighted in the area.

The past 7000 years, during the early to middle Holocene involved the formation of a linear barrier dune system, enclosing a long, narrow lagoon that stretched from Bunbury to Preston Beach. Strong winds and swell drove inland coastal erosion which moved a few kilometres east over approximately 7000 years. The Holocene barrier is stratigraphically complex due to being exposed to varying sea levels throughout time. 8000 years ago, Holocene sea levels were 6m below the modern present level and 7,500 years ago, levels rose dramatically by 4m. These intense fluctuations were driven by glacial and inter-glacial events. Coastal near-shore marine and coastal sedimentation took place over four stages, separated by glacial episodes (Department of Environment & Conservation, 2009). Semeniuk (1995) defined the Holocene coastal coquina as "white, cream, yellowish and tan shell beds, shell grit, shelly sand, and coarse to medium sand".

European: Preston Beach began developing in the early 1950s after reports of good fishing. In 1957, a local syndicate bought 25 acres from Stevie Mitchell at £2 per acre; each member paid £10 and could own one of 58 blocks. The syndicate dissolved in 1959, and the Drakesbrook Road Board took over, enabling further growth. A golf course was built in 1974, reticulated in 1976, and opened with a caravan park in 1978. Both were initially private but bought by Alan Bond in 1981 and sold in 1982. The golf club formed in 1984, and the Shire of Waroona purchased the course in 1986, supported by the Preston Beach Progress Association. The causeway was built in 1956 by syndicate members, replacing an older access route. When Lake Preston rose above 0.9 m, access was lost, and vehicles relied on pegged markers to cross the higher lakebed.