Leicester is located along the southern border of Addison County at the western edge of the Green Mountains. It is bordered by the town of Whiting to the west, Salisbury to the north, and Goshen to the east. The town of Brandon in Rutland County is to the south. U.S. Route 7 passes north-south through the center of Leicester, connecting Brandon and Rutland to the south with Middlebury to the north. Vermont Route 53, Lake Dunmore Road, travels north-south through the eastern part of Leicester, passing through the settlements of Satans Kingdom and Fernville. The southern half of Lake Dunmore, a recreational area, is in Leicester.
According to the United States Census Bureau, the town has a total area of 21.8 square miles (56.4 km2), of which 20.8 square miles (54.0 km2) is land and 0.93 square miles (2.4 km2), or 4.28%, is water.
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