Vigdísarvellir has always been a popular camping site in Iceland, especially amongst the people living on the Reykjanes Peninsula. It used to be a smallholding from the Þórkötlustaðir farm in Grindavík inhabited until 1900. Explaining why Vigdísarvellir is the only spot in the Peninsula's lava fields where you'll find large green pastures. Also, you will still find the ruins of the old crofts in situ.
Vigdísarvellir, along with Lake Djúpavatn, is part of the high-temperature geothermal area on the Reykjanes Peninsula. The low and flat lands are predominantly covered by Holocene lava flows covering the older hyaloclastite formation.
From Vigdísarvellir, you will find hiking trails in all directions. It is a great location to camp for a few days while you inspect the hiking trails crisscrossing the Peninsula. The Reykjanes Peninsula being one of the most geologically interesting areas in Iceland, you will most certainly find palagonite, basalt and obsidian. The lava formations are quite spectacular with their deep valleys and rugged hills, beautiful rare moss species and delicate flora. Here is most certainly the place where you can practically merge with nature. And, after a day of robust hiking, lying down in the grass at Vigdísavellir to listen to the silence, is simply ethereal.
Below is the location of Vigdísarvellir on the map of Iceland