ocr: Lake ina Volcanic Crater About Crater. Lake This beautiful lake lies withina volcanic crater high: in the Cascade Range. The crater, six miles in diameter, was formed when the top ofanancient volcano caved inafter a volcanic eruption. Famed for its vivid blue color, Crater Lake is 1,932 feet (589 m) deep. The lake is rimmed byl lava cliffs and has two small islands dotting its surface.