Inverness is made up of many small neighborhoods, each with its own history and character. The city's official neighborhood program documents these communities and their development over the decades. Historic residential streets near downtown hold early-to-mid-20th-century homes close to the courthouse and cultural venues, while newer subdivisions have spread toward the surrounding lakes and conservation areas. Homes on the chain of lakes offer waterfront access and canal frontage for boating and fishing. The overall feel is quiet and low-density, with a mix of established tree-lined streets, lakeside enclaves, and newer single-family communities serving both full-time residents and seasonal residents drawn to Citrus County's mild winters.

Life in Inverness revolves around its historic downtown and the surrounding outdoors. The central district, anchored by the Valerie Theatre Cultural Center and the Old Courthouse, hosts local shops, restaurants, and community gatherings. The pace is deliberately unhurried, and civic life centers on parks, lakes, and seasonal events rather than a busy nightlife. Residents use the Withlacoochee State Trail for walking and cycling, launch boats onto the chain of lakes, and fish the Withlacoochee River. As the county seat, the city has a steady daytime presence of government and professional workers, while its cultural venues and festivals give the downtown a small-town vitality that draws visitors from across Citrus County.

Inverness is served by the Citrus County School District. Schools serving the city include Pleasant Grove Elementary, Inverness Primary School, Inverness Middle School, and Citrus High School, giving families a complete K-12 pathway within the community. The district operates schools across Citrus County, and Inverness benefits from its role as the county seat with centrally located campuses. The city's small size keeps school commutes short, and the district's programs serve a countywide student population drawn from Inverness, nearby Homosassa Springs, Crystal River, and the surrounding unincorporated areas. Private and early-childhood options supplement the public system.

Outdoor recreation is Inverness' defining asset. The Withlacoochee State Trail, a 46-mile paved rail-trail and one of the longest in Florida, runs through the city and links it to small towns, farmland, and wildlife habitats to the north and south. The Withlacoochee River offers paddling and fishing, while the 10,950-acre Flying Eagle Preserve protects wetlands and oak hammocks for hiking and wildlife viewing. Fort Cooper State Park, just south of the city, preserves a Seminole War-era site with trails and a lake for swimming and boating. The chain of lakes at the city's edge provides boating, skiing, and shoreline parks, making Inverness a year-round base for an active, water-centered lifestyle.