The area was first defined as a protected area in 1977 when it became a reserve protected by the province of Rio Negro. In 2020, efforts began to upgrade the status to that of national park, which carried with it greater protection under federal law. The Rio Negro state government ceded the land to the federal government in 2020 and its status as a national park was formalized by the federal government in 2022.

Plants are sparse in the protected area, which is dominated by rock and sand; for example, one of the islets, the Lobos Islet, is completely devoid of vegetation. The other islets feature vegetation adapted to the saline environment, such as the perennial glasswort and espartillo, which alternate in the more inland areas with scattered less dominant species.

Aquatic birds are the most numerous type of animals in the park with seagulls and similar birds circling over the islands. Colonies of penguins live on some of the islets, as well as on rocky parts of the mainland. Islote Lobos is the world's northernmost colony of Magellanic penguins. A number of coastal birds live in the park where they nest on the semi-protected promontories and on seaside cliffs and inland areas. These include endangered species like the giant petrel, southern flamingo, southern two-band plover, and the red knot. The birds come to feed in the tidal pools that are formed as the waters recede at low tide, exposing a wealth of small crustaceans, mollusks and other food sources.

Many park visitors come to see the colonies of seals and sea lions who sleep on the offshore rock formations and hunt for their seafood dinners in the shallow waters of the gulf. As you go inland from the coast, there are plains and woodland groves in the plateau areas. These ecosystems are more appropriate for deer, guanacos, boars, foxes, armadillos, capybara and skunks.

Eastern Patagonia is considerably warmer than the western part of the region and Islote Lobos tends not to have freezing temperatures. Instead, the park often gets steady warm breezes that blow constantly, keeping the area relatively dry.