Beautiful Wooded Spots
Similar to nearby Princess Creek Campground, Sunset Cove Campground is part of the Deschutes National Forest and is located on Oddell Lake. They also both have docks for day-use boating, pit toilets, and generally nice, larger camp sites surrounded by trees.
Sunset Cove is a bit larger and more developed, the day use area is nicer and more accessible, and there's drinking water available. The spots on the lake at Princess Cove, however, are amazing, and I never found camp sites quite as nice at Sunset Cove.
In summary: you'll do great at either of the Deschutes National Forest campgrounds on Odell Lake. If you want slightly more developed facilities, including drinking water, go to Sunset Cove. If you want to get away from everything with an amazing spot on the water, go to Princess Creek.