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According to the United States Census Bureau, the CDP has a total area of 8.3 square miles (21.5 km2), of which 8.2 square miles (21.3 km2) is land and 0.077 square miles (0.2 km2), or 0.71%, is water.
Middle Island has many lakes such as Spring Lake, Artist Lake, and Pine Lake (which has a new dock). Middle Island also contains the headwaters of the Carmans River, which originally began at Pfeiffer's Pond on the northeast corner of NY 25 and Old Middle Island Road, but now begins within Cathedral Pines County Park.
The European-American history of Middle Island goes back at least to 1766, when the first Presbyterian church was built. Rev. David Rose, who was also a doctor and a pastor of the South Haven church, covered his immense parish on horseback. He filled his saddle bags with Bibles and medicines to minister to his frontier congregation. In 1766 the parish opened a cemetery just across from the church.
The first schoolhouse was built in 1813 east of the church. In 1837, a new church was built just to the rear of the older one. It served the community for 200 years until the new Christian Education building was built at the Longwood Estate in 1966.
Middle Island gained an influx of Estonian refugees during the 1940s and 1950s mainly around the Pine Lake area.
For over 100 years (until it was burned down in 1971), Pfeiffer's Store was a center of activity for Middle Island and surrounding communities. A nearby lake, known as Corwin's Pond, was renamed "Artist Lake" after painter Alonzo Chappel settled there in 1869.