Dallol lies in the evaporitic plain of the Danakil depression at the Afar Triangle, in the prolongation of the Erta Ale basaltic volcanic range. The intrusion of basaltic magma in the marine sedimentary sequence of Danakil resulted in the formation of a salt dome structure, where the hydrothermal system is hosted. The age of the hydrothermal system is unknown and the latest phreatic eruption that resulted in the formation of a diameter crater within the dome, took place in 1926. The wider area of Dallol is known as one of the driest and hottest places on the planet. It is also one of the lowest land points, lying below mean sea level. Other known hydrothermal features nearby Dallol are Yellow (Gaet'Ale) and Black Lakes.