Olhos de Água Beach got its name due to the water holes that can be seen in the sand and submerged during low tide. These result from a hydrological process in which there is a submarine flow of fresh or brackish groundwater from land to sea.

Submerged water holes are responsible for a unique structure of marine fauna communities due to the emission of nutrients by these upwellings. The cliffs seen on this beach are made up of calcoarenites formed in a Late Miocene marine environment (11.6 – 5.3 Ma).