Prior to large scale levelling as part of the development of Telford New Town, the area was covered by clay mounts and large clay pits that dominated the landscape to the extent that they formed points of reference for the locals. There is still a local clay pipe factory in the adjacent Doseley village; grey clay predominates on the immediate outskirts of Dawley.
There was a castle in Dawley, but it was demolished around 1648. The site is unknown, although the Castle Pools (on the old quarry site) and Castle Ironworks (built by the Darby family, one of whom commissioned the world famous Iron Bridge) possibly indicate the general area where it may have stood. Prior to the landscaping, following the creation of Telford New Town, extensive ruins were detectable next to the Castle Pools and are shown on old maps as being the location of the castle. In the 1980s the whole area was buried under thick topsoil and planted with trees. Ironbridge is a short distance away.
The adjacent village of Horsehay was the site of a bridge and later a crane fabrication factory that exported around the world. The bridge over Victoria Falls is said to have been built there. Telford Steam Railway trust is located across the road from the former factory site.
Dawley has a street market every Friday. Dawley town centre consists of a single pedestrianised street that was previously the main route from Bridgnorth in the south to Wellington in the north. The area around Dawley, not covered by Telford New Town, is rural and provides extensive opportunities for walking. The Ironbridge Gorge and The Wrekin are both pleasant walks from Dawley.
On the northern edge of Dawley is Malinslee where St. Leonards church stands. The design of St. Leonards, an elongated octagon, is said to have been influenced by Thomas Telford. Other churches supposedly influenced by Thomas Telford, during his work in Shropshire, are at nearby Madeley and Bridgnorth.
Edith Pargeter, who under her pen name of Ellis Peters wrote the Brother Cadfael novels, went to school in Dawley. Numerous roads in Aqueduct, such as Cadfael Drive and Ellis Peters Drive, are 'themed' after her.