Ladle House occupies the crest and east-facing slope of a prominent ridge in the south-central portion of Indian Camp Ranch. The western half of the site, which is primarily the Pueblo II portion of the site, is situated in a mature pinyon and juniper forest, while the eastern half of the site, which is the Basketmaker III portion of the site, is situated among sagebrush and grasses. To the east and north of the site are deep loess soils well-suited for farming. To the west and south are outcrops of sandstone bedrock and a low rocky canyon rim.
The site is situated at an elevation of 6,280 feet above sea level. During the prehistoric periods when it was occupied, the climate was similar to what it is today. Summers were hot, with temperatures occasionally reaching into the low 100's. Thunderstorms were an infrequent but important source of drinking water for the Anasazi, and the rains provided moisture for their farms and gardens. Winters were cold, with temperatures sometimes plunging to -20 F. Snow could cover the ground for months at a time, and this snow was critical to the successful germination of the Anasazi's crop seeds in the following spring.