This species can be found in coniferous and broadleaf forest and dry thorn scrub (Reid 2009). It roosts in Spanish moss, under dead palm leaves or dry corn stalks. This species appears to be more social than other Lasiurus species, and may form nursery colonies. It usually forages 3 to 4 m above ground over open, grassy areas, and 100 or more bats may aggregate when feeding (Barbour and Davis 1969). Northern populations reproduce in May to June, and litter size is 2 to 4 (Reid 2009). Northern yellow bats rarely roost in buildings or other human-made structures. Foraging habitat is primarily open areas such as fields, pastures, airports, golf courses, marshes, lake borders, and the open savanna-like habitat of sandhills, also forest edges and spaces above trees.

This species occurs from Honduras to Sinaloa (Mexico) and through Texas to Florida and New Jersey (USA) (Simmons 2005). It occurs from lowlands to 1,600 m (Reid 2009). Also found in Costa Rica (Rodríguez et al. 2003).

It is found in some protected areas. Research actions are needed as many aspects of its biology are unknown.