Cephalozia bicuspidata is commonly found in sunny sites on decorticated rotting wood, rock, or bare mineral soil.
Cephalozia bicuspidata is a pint-sized leafy liverwort. Individual shoots are dark green and creep along the subtratum.
Lateral leaves are equally bilobed and small. At times, shoots appear to have no leaves due to the small leaf size.
Leaf cells have chloroplasts, plastids, and complex oil bodies.
Perianths are elongate, white-tipped and toothed.
Mature spores are lobed.