Oakley lies at the extreme south end of the Snake River Basin. Beyond the irrigated fields, which surround the town, mountains rise on three sides. The peak of Middle Mountain stands to the south, and the Albion Mountains form a ridge along the eastern horizon. The hills to the west rise to the flat-topped Cottonwood Ridge. Goose Creek flows out of the mountains to the southwest, and not far from Oakley to the west.
With a population of just 668 people, as of the year 2000, Oakley is a tiny farming and ranching town. Three streets run east and west and nine north and south. The houses are sparsely located through the town with gardens and farmland interspersed. The elevation is 4,560 feet. The southern terminus of Idaho Highway 27 is at Oakley. It runs northward through Burley and Paul and across the Snake River Basin.
Oakley is the birthplace of David B. Haight, an Apostle of Jesus Christ, of the LDS (Mormon) Church, who was born on September 9, 1906.