Bagley, located in the southwestern corner of Iowa, experiences a humid continental climate with hot summers and cold winters. The area is dominated by agriculture and has several small ponds and streams that contribute to the Raccoon River watershed. The Raccoon River is a major source of drinking water for the area and is also popular for fishing and boating. Outdoor recreation opportunities in the area include hiking, camping, and hunting in the nearby Whiterock Conservancy, as well as golfing at the River Valley Golf Course. The town is also home to several parks and a community center.