The word Kalasa is a corruption of the Sanskrit root, Kalasha, which means a waterpot or jug. In the context of Hindu temple architecture, every temple should have a round pinnacle placed at the top, known as the Kalasha.

Geographically, Kalasa is surrounded by the Bhadra river on three sides with the Duggappana Katte hill at the South. Viewed from an altitude, the town resembles a pot, hence the name. The Kalaseshwara temple is located at the base of this hill.