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The environment of a module encompasses the objects of which the module consists — areas, placeables, traps, items, etc. In most contexts, "environment" usually focuses on only a few elements, such as only considering hostile elements when talking about PvE, or only considering the intended player character level when talking about the challenge level.

As far as character builds are concerned, the environment is an important factor. A character builder must take into consideration changes to spells and classes, availability of custom items, and expected monster abilities in order to create an effective build. This may, for example, determine if a monk build will use kamas or gloves.

Three common types of environment are low magic, high magic, and uber.

Low magic environment:
In a low magic environment, the occurrence of magic equipment is very rare. There are often many changes to spells and classes, since otherwise spellcasters would be unduly powerful compared to other characters, who are much more dependent on equipment.
High magic environment:
In a high magic environment, the occurrence of magic equipment is quite common, and there are usually no changes to balance. Usually, all items from the default BioWare palette can be found. An example of a high magic environment is the Hordes of the Underdark campaign.
Uber environment:
In an uber environment, there usually exist items with enhancement bonuses over +10 and with multiple immunities. In some of these environments, characters can (virtually) gain levels beyond 40 through various simulations.