Candolleomyces luteopallidus is a decomposer that can be found from late spring through fall in eastern Nebraska. It grows on rich soil, humus, or decaying wood, often in disturbed areas such as trailsides or forest edges. The species name luteopallidus refers to its pale yellow coloring — luteo meaning “yellow” and pallidus meaning “pale”.

The cap is pale yellow to cream-colored when fresh, often becoming lighter or slightly faded with age. It starts out bell-shaped and becomes broadly evenly rounded or nearly flat as it matures. The gills are slightly attached to the stem (adnexed), gray to cream when young turning dark brown to nearly black with age. The stem is thin, white, fragile, and with an annular zone at the top. The spore print is brown.