Pottia truncata typically grows on damp clayey soil. It is a relatively widespread species, occurring in various parts of the world such as China, Japan, Russia, Europe, South and North America. Pottia truncata is presumed to be an introduction in British Columbia where it is more or less restricted to human disturbed habitats such as along the margins of fields, on bare soil in lawns and in neglected gardens. In Vancouver, extensive turfs of this weedy species can sometimes be found growing on bare soil patches in boulevard lawns.
The leaf cells are smooth. Uneven or notched leaf margins near the leaf apex resulting from projecting cell ends are sometimes apparent.
The stem is short and usually unbranched.
The seta is typically 2-3 mm tall.