The Tealby layer consists of two clay beds sandwiching a layer of limestone to a total depth of 20-50 metres and is the basis for the rolling, mainly arable farmland of today. In the late Jurassic period, uplift, erosion and faulting took place to give the present configuration of the strata. The drier scarp lands were chosen for the routes of roads in Roman times and beyond, in some cases following routes established in the Iron and Bronze Ages. The geology has also resulted in spring lines below the limestone outcrops, which in turn has helped define the pattern of settlements including Tealby.

The major land use now is a mixture of arable farmland and some managed grassland where cultivation is practical, and a lesser area of rough grass or meadow where it is not practical or not practised. Some hedges have gone in the cause of field enlargement since the time of the 1973 and 1976 surveys, but a significant number remain, typically with five or six plant species, although hawthorn predominates. The parish is also well endowed with trees within the hedgerows, along the banks of watercourses, and in scattered copses. It also has about a quarter of its area in part of Willingham Woods, which are managed by Forest Enterprise. These woods contain a mixture of conifer and broadleaf species planted at various times over the last 150 years and harvested in a planned rotation.

Despite the large area of cultivated land there are extensive wildlife habitats in the parish supporting a wide diversity of plant, animal, insect and bird species. As well as the woodland, hedges, meadows and other features already mentioned, the parish has wide verges on most of its roads and lanes and these verges typically contain about ten grasses and twenty other plant species as well as a variety of insect life. A simple land use survey of the parish has been conducted and this will no doubt be extended to more detailed plant, animal and insect surveys in the future.

Water contributes significantly to the character of Tealby. A number of springs emerge on the higher, eastern side of the parish and some develop into watercourses. The most significant is the River Rase which rises at Bully Hill Top and runs through the southern side of the village on its way west to join the River Ancholme. In the past it played an important part in the economy of the village area by powering a series of water mills. Apart from the river, open water is confined to a few ponds, but even the many drainage ditches add to the diversity of environments still to be found in this very rural parish