This species - mainly found in coniferous forest - is widespread in Europe. It is characterized by the bluish colours on the gills and the cap margin (when young) in combination with a rather unpleasant earthlike smell, which develops with age. This smell is however not perceived by all.

It is also found in frondose forests, where it is easily confused with C. largus, which differs by a much weaker smell and microscopicaly by having wider gelatinous hyphae. This ecotype of C. variecolor has by some been treated as C. nemorensis. By others C. nemorensis has been used for both C. largus and the mentioned ecotype of C. variecolor.