The geographic location of Canillas de Aceituno makes it a natural balcony of Axarquia. It adjoins the Sierras of Tejeda, Almijara and Alhama Natural Park to the north. The road to the village offers views of the Velez and Rubite valleys, through a landscape of olive plantations, vineyards, almond and fig trees. On the hills or mountains one can see the awnings ready to dry the grapes for raisins. This tree abundance is made possible by the Almanchares, Bermuza and Rubite rivers, which also facilitate the existence of natural springs such as the Gazuela and the Ivy. In the environment of Canillas is abundant with natural caves highlighted by the Fajara, four kilometers from the villa, in whose interior are the tunnels up until a kilometer and a half.

Inside the village there are two natural springs that feed on an Arab cistern located under the city council. One of the streets of archaeological interest is the Castillo street, which there are still remains of what was once an ancient fortress and leading to a lower neighborhood, through Estación street. The Cemetery street lies above an old Arab cemetery.

During the Andalusian earthquake of 25 December 1884 15% of houses collapsed and 65% were badly damaged. There were 6 dead, 4 seriously injured and more than 30 minor injuries. The upper neighborhood suffered major damage, although there were no fatalities in it.^[2]

In recent years the municipality has seen a rise in real estate investment, primarily by wealthy Northern Europeans, especially Germans, Dutch, Danes and Swedes.^[3]

The village's name comes from the Latin "Cannillae" (the zone of cane plantations) and the Arab word "Azeytuni" (woven and dyed silks.)

The municipality of Canillas de Aceituno has an area of 42 km². The population center is located at an altitude of 645 meters, and the annual average temperature is 17 °C (63 °F). It has a population of 2,300 inhabitants.^{[citation needed]}