The deposit is evidently the result of the degradation of the neighbouring Dartmoor granite; and it was laid down in river flood plains and lakes during the late Eocene and Oligocene periods. Most of the fossilised plant material in the lignite is from Sequoia couttsiae.
The Bovey Formation is the major source in England for ball clay – a highly plastic fine-grained kaolinitic sedimentary clay of great importance to the pottery industry. Large excavations have been made for the extraction of these clays. The lignite or "Bovey Coal" was in the past burned in local kilns, and in steam engines and workmen's cottages, but it was not economical.