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Ammatophora nodulosa is an encrusting bryozoan, found in offshore waters. The colonies form small, irregular patches in approximately 30 - 50 meters of water. Ammatophora nodulosa colonises medium to coarse shell gravels.
The species forms part of a characteristic community of cheilstomate bryozoans adapted for living on the smallest shell substrata. Colonies of this, and co-occurring species such as Callopora discreta, will breed at colony sizes of just a few dozen zooids and perhaps do not survive to grow much larger. Formerly, A. nodulosa was regarded as rare, previously recorded from the coasts of Antrim, south Devon and from Guernsey. The species now appears to be not uncommon off southwest Britain.