As a geographic entity Labrador comprises the easternmost portion of the Canadian Shield, the rocky, glaciated plateau of eastern Canada. This plateau is characterized by numerous lakes draining into the Atlantic via the Churchill, Naskaupi, Eagle, and other rivers; by thin, poorly drained soils; and by a bleak, deeply indented coastline that is swept by the cold Labrador Current.

The origin of the term Labrador is obscure, but it is believed to have been first applied to Greenland, called Land of Labrador by early Portuguese navigators, and later transferred to the northeastern North American mainland by cartographers. Political control of the peninsula passed back and forth between Newfoundland and Quebec, thus confusing the name's geographic significance until the Quebec-Newfoundland border was established in 1927.

Many of Labrador's largest communities, such as Labrador City, have sprung up since iron-ore exploitation began in the 1950s, powered by hydroelectric plants at Menihek and Churchill Falls. Fishing and lumbering are of local importance.