The lake received its name from the honeydew produced by the abundant aphids inhabiting the area. During the Pleistocene, Honey Lake and the entire Honey Lake Valley were part of Lake Lahontan in western Nevada, with a lake water level of a level of approximately higher than the 1984 level of Honey Lake. The connection to Lake Lahontan was through Astor Pass north of the Virginia Mountains into Pyramid Lake and through Sand Pass into the Smoke Creek Desert portion of Lake Lahontan to the northeast. Both passes are at approximately elevation. Toward the end of the Civil War, the California Volunteer Cavalry used the route from Camp Bidwell through the Honey Lake and Surprise Valley areas as a line of protection for silver mine output in the Owyhee district of Idaho. Honey Lake was used as a bombing test range prior to World War II and for ordnance demolition and testing through the war and into the mid 1950s.
The Honey Lake Wildlife Area is a California Department of Fish and Game protected areawetland of 7667 acres at the mouth of the Susan River on the north shore of Honey Lake which has numerous birdspecies. Mammals such as deer and pronghorn and a modest amount of warm-water fish are taken at Honey Lake. The state issued a special series of text-only season-long waterfowl hunting permit stamps for the area, starting with the 1956–57 season and ending with the 1985–86 season. Day permits were also sold, but these were in card form. The stamps are listed in a number of catalogs for U.S. fish & game stamps, including the Scott Specialized Catalog of United State Stamps & Covers. Honey Lake Wildlife Area was originally acquired to provide nesting and brood-rearing habitat for resident waterfowl, which is still a very important activity. Since its beginning, the wildlife area has expanded, and during peak migrations as many as 30,000 snow and Canada geese and 20,000 ducks have been observed daily. During the winter, a number of bald eagles can be observed at the HLWA, and during the spring, the threatened sandhill cranes and other sensitive species such as the white-faced ibis and bank swallow can be found. Ring-necked pheasants and California quail can be observed year-round.