They are well adapted to grazed rangelands, but find croplands less suitable. The terrain is often flat, but rugged landscapes are also used. The extent of suitable habitat is quite restricted in British Columbia. Over much of the owl's range, it is most abundant in active colonies of ground squirrels or prairie dogs, where numerous nesting and satellite burrows are available. This indicates that the availability of burrows is a major factor controlling the abundance of Burrowing Owls.
Burrows dug by badgers are also important in many areas.
In British Columbia there are relatively few burrowing mammals in habitats that are otherwise suitable for this owl. A viewing site, marked with a sign, has been set up north of Osoyoos Lake on Black Sage Road, where the birds can be viewed from a distance without disturbance. The overall abundance of Burrowing Owls is limited by the availability of suitable habitat. The grasslands in which they live are restricted to the dry valley bottoms of the southern interior, and comprise less than one percent of the area of the province. This small area of natural grassland is being further diminished by expanding towns, intensive agriculture, and a multitude of other industrial uses and developments, especially in the Okanagan Valley.