The island is teardrop-shaped and comprises 2.5 acres. It is located east of the mainland, off the eastern end of 20th Avenue. The island is accessible only by boat. The north end of the island has mangroves, while the south end has a sandy beach.
Teardrop Island was originally named Swan's Island after a family that owned the island. The island was then owned by the city of Vero Beach, which leased the island to a local businessman who opened a restaurant on the island. The restaurant closed in 2011, and the island was renamed Teardrop Island.
The island is now a popular destination for boaters and kayakers. It is also a popular spot for fishing, swimming, and sunbathing.