The municipality, located 16 km from Aranda de Duero and 80 km from Burgos, is made up of a single population centre. It has 326 inhabitants.

The village of Baños is 895 metres above sea level. The entire municipality is surrounded by gentle cornices that lead to moors 30 to 40 metres above the town. The highest points in the municipality range from 890 in El Redondal to 925 in El Rincón and Lo Tieso. The municipality is irrigated by the river Bañuelos, a tributary of the Duero.

Baños is bordered to the south by the municipalities of Quemada, Villanueva de Gumiel and Aranda de Duero; to the west by Tubilla del Lago and Gumiel de Izán; to the north by Valdeande and Caleruega; and to the east by Hontoria de Valdearados.

The active population of the municipality is mainly dedicated to work in Aranda de Duero and the cultivation of vineyards and cereals.

The name “Baños” (baths) seems to refer to the existence of “termas” (thermal baths) in the locality. Thus, in the Roman Villa, thermal baths have been discovered whose water came from the so-called “Fuente de la Salud” (Fountain of Health). However, other authors suggest that the name derives from the Latin word “Vannos”, which means waste land.