Castledawson ward lies within the rural landscape of Mid Ulster, centred around the village of the same name along the Moyola River. The area is primarily characterised by agricultural land and low-density residential development. Its economy has historical connections to the linen industry, with several former mill buildings still present in the village, reflecting its industrial past. The local road network connects it to nearby towns like Magherafelt and Toome.
The ward encompasses surrounding townlands and farmland, with the Moyola Park estate and its demesne being a notable local feature. The river and its corridors influence the area's geography. Community life is focused around local schools, churches, and sporting facilities, including GAA grounds. The area is part of the wider Lough Neagh basin, with peatland and wet grassland common in the low-lying areas to the east.