Columbia Beach is located on the western shore of the Chesapeake Bay with the wildlife sanctuary, Flag Pond, to its west, and Franklin Point State Park, with its newly restored beach, to the south. It is one of several smaller communities located in Shady Side, a peninsula 20 miles south of Annapolis and 40 miles from Washington, D.C. and Baltimore. 

Shady Side is part of Anne Arundel County and sits within Maryland's State Senate District MD-30, Congressional District MD-5, and local District 7. Shady Side is also geographically located in "South County," a term used by locals to describe the rural and waterfront communities in the southern part of Anne Arundel County. School-aged children are zoned for Shady Side Elementary, Southern Middle School, and Southern High School. Neighboring towns include Churchton, West River, and Deale. Lothian, Friendship, and Wayson's Corner are also within a 15-minute drive. 

Though geographically rural, there are a number of restaurants, grocery stores, gas stations, and other small businesses nearby. Christopher's Fine Foods and Shady Side Market are great options for local grocery shopping and ready-to-eat food options. Local restaurants include Jay's Latin Kitchen, West River Pit, AZTC, Black Market Bakers, South County Cafe, Happy Harbor, Skipper's Pier, and Dockside. For a larger selection of shops, Edgewater and Dunkirk are both a 25-minute drive, though in opposite directions.