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Background Submerged plants composed of charophytes (green algae) and angiosperms develop dense vegetation in small, shallow lakes and in littoral zones of large lakes. Many small, oligotrophic plant species have declined due to drainage and fertilization of lakes, while some tall, eutrophic species have increased. Although plant distribution has been thoroughly studied, the physiochemical dynamics and biological challenges in plant-dominated lakes have been grossly understudied, even though they may offer the key to species persistence. Scope Small plant-dominated lakes function as natural field laboratories with eco-physiological processes in dense vegetation dictating extreme environmental variability, intensive photosynthesis and carbon cycling. Those processes can be quantified on a whole lake basis at high temporal resolution by continuously operating sensors for light, temperature, oxygen, etc. We explore this hitherto hidden world. Conclusions Dense plant canopies attenuate light and wind-driven turbulence and generate separation between warm surface water and colder bottom waters. Daytime vertical stratification becomes particularly strong in dense charophyte vegetation, but stratification is a common feature in small, shallow lakes also without plants. Surface cooling at night induces mixing of the water column. Daytime stratification in plant stands may induce hypoxia or anoxia in dark bottom waters by respiration, while surface waters develop oxygen supersaturation by photosynthesis. Intensive photosynthesis and calcification in shallow charophyte lakes depletes dissolved inorganic carbon (DIC) in surface waters, whereas DIC is replenished by respiration and carbonate dissolution in bottom waters and returned to surface waters before sunrise. Extreme diel changes in temperature, DIC and oxygen in dense vegetation can induce extensive rhythmicity of photosynthesis and respiration and become a severe challenge to the survival of organisms. Large phosphorus pools are bound in plant tissue and carbonate precipitates. Future studies should test the importance of this phosphorus sink for ecosystem processes and competition between phytoplankton and plants. [ABSTRACT FROM AUTHOR]