The town was named after valuable ore compounds of the chemical element tellurium, a metalloid element which forms natural tellurides, the most notable of which are telluride ores of gold and silver. Although gold telluride minerals were never actually found in the mountains near Telluride, the area's mines were rich in zinc, lead, copper, silver, and ores which contained gold in other forms.

Telluride sits in a box canyon. Steep forested mountains and cliffs surround it, with Bridal Veil Falls situated at the canyon's head. Numerous weathered ruins of old mining operations dot the hillsides. songs. It is especially known for its ski resort and slopes during the winter, as well as an extensive festival schedule duringthe summer.