This saprotrophic, or decomposer, jelly fungus is notable for its small orange gelatinous appearance. Its common name is the Jelly Spot Fungus. Growing to sizes between 2-8mm, Dacrymyces stillatus is gregarious and appears in large groups and clusters on coniferous and deciduous woods. The fruiting bodies are broad, round, convex and at length plicate, meaning that it can grow to become shell or fan shaped.

It frequently grows on the stumps of trees, fallen branches and human construction. D. stillatus decays wood rails used in human homes, fences and railroads, particularly in Europe. This fungus consumes mostly the lignin in the wood, which is integral in the decomposition process, but structurally weakens wooden man-made structures. In many parts of the world where it appears, D. stillatus is considered a pest.

D. stillatus appears mainly during wetter periods, when it absorbs water, expands its size and grows. As a jelly fungus, D. stillatus can survive in desiccated form during drier periods. It dries as a rusty-brown crust on the substrate and can be revived with moisture. It is among the first fungi to appear after a rain, the dried, fruiting bodies quickly regaining their gelatinous texture.

There is some debate about the naming of D. stillatus versus D. deliquescens. Older literature reported the two as separate species, with D. stillatus distinguishable due to its bright orange color which is persistent. Furthermore, it is smaller, less depressed (maintains roundness) and firmer. However, Lorene L. Kennedy (1956) reports that D. stillatus is merely the bright orange arthrosporous or imperfect state of D. deliquescens, as opposed to the pale yellow basidiferous state. Now, D. stillatus is considered the preferred synonym to D. deliquescens and describes both states. Currently, this name is still widely accepted in the academic community.