A lagoon is a shallow body of water separated from a larger body of water by barrier islands or reefs. Lagoons are commonly divided into coastal lagoons and atoll lagoons. They have also been identified as occurring on mixed-sand and gravel coastlines. There is an overlap between bodies of water classified as coastal lagoons and bodies of water classified as estuaries. Lagoons are common coastal features around many parts of the world. Gulf inlet sand dune inner sea.