Lake Butler built up around the railroad corridor that now serves as a recreation corridor, the Palatka Lake Butler Trail. This is currently the northern terminus for the 47-mile trail, although future plans are to expand it up the railroad right-of-way to Lake City.
The compact historic downtown sits along Butler Lake, with a big lakefront park with picnic pavilions, a playground, a beach, and swimming platforms.
Lake Butler has long been one of the friendliest towns along the Florida Trail for long distance hikers making their way through North Florida, despite Union County having no lodgings. Everything you need for resupply is here, and City Hall can help you figure out where to camp.