Ballygawley ward is situated in the southern part of Mid Ulster District, centred around the village of Ballygawley itself. The area is primarily rural, characterised by rolling farmland and low hills, with the A4 and A5 road corridors forming major transport routes through it. This places it within the wider drumlin belt of south Tyrone. Settlement is dispersed, with several smaller townlands and housing developments spread across the landscape.
The local economy has traditional ties to agriculture, though many residents now commute to larger employment centres. The ward contains stretches of the River Blackwater, which influences the local topography and land use. Social and community life is focused on the village, which provides essential services and amenities for the surrounding population.