Beautiful views, great campsites and amenities, nice lake.
Only downside - the number of other people who also like this spot. I'm picky when it comes to noise and had a hard time with all the other (tourists) campers. But, get up early to hike in the surrounding area and enjoy the peace while it lasts!
Dirt road to high alpine setting, big views and lakes - mountain camping at its finest!
4WD recommended for the drive up - water crossings and some good ruts. Gorgeous lakes, can be heavily used by locals so pretty obvious trails between tent sites. Check out Alta ghost town (abandoned mining town), which used to serve Gold King Mine.
You can hike up over the ridge onto Telluride ski area, and hike down into town of Telluride this way if you're feeling up for a long walk. Great views of Palmyra and some backcountry ski terrain!
If camping isn't your thing, walk up to the Observatory or book a stay there!