Clay is one of the most important minerals having both geological and industrial significance. Clay lenses in the Dupi Tila Formation of the Bengal Basin have been investigated to characterize and determine their origin in terms of geological environment. Clay samples have been collected from the fresh cropped surface from the areas of Dupigaon (Jaintiapur Clay), Birisiri (Bijoypur Clay), and Bandarban (Bandarban Clay) in Bangladesh. Characterizations of the clay deposits have been carried out by field investigation, scanning electron microscope (SEM), X-ray diffraction (XRD), laser particle size analysis techniques, and X-ray fluorescence (XRF). Field investigation shows that clays are white, yellowish to variegated in color with a thickness of 15 cm to about 4 m, and moderately soft. The X-ray diffraction analysis reveals that kaolinite is the predominant clay mineral in all samples with minor amounts of quartz and feldspar. SEM analysis indicates that abundant tiny disc and irregular shape of kaolinite crystals are mixed with sparse gathers of K-feldspar and detrital quartz grains. The presence of silt in all the clay samples has been verified by the gran size ranges from laser particle size analysis. The grittiness is the result of the deposition of silt considering the highest percentage in Bandarban and Bijoypur and lowers in Jaintiapur. The XRF analysis shows that SiO2 (68–75%) is the most abundant among major oxides, Al2O3 and Fe2O3 come next, along with the lower percentage of MnO, MgO, CaO, Na2O, K2O, TiO2, P2O5, and SO3. The average concentration of different trace elements has been ranging from 3 to 430 ppm. Several geochemical indices suggest that the sediments might be derived from the Shillong plateau and the Himalayas in the north and the Naga-Lushai-China Hill-Arakan Yoma mobile belt in the northeast, which are highly weathered sedimentary terrains. Provenance studies and elemental ratio supports the evidence of the felsic origin of the studied sample. The Chemical Index of Alteration (CIA) value of 93% indicates the occurrence of significant weathering in different sediment recycling phases. From the results of the aforementioned analyses, it is clear that clay lenses in the Dupi Tila Formation are in-situ in origin and parent materials are detrital rather than authigenic nature confirmed by the presence of detrital quartz and reviewing the depositional environment, which gives us the insights of the geological condition of that time as well as the possible mode of sediment transportation.