Paulo (2001, 2008) suggested that the subspecies Timon lepidus nevadensis warrants recognition as a distinct species, and it was formally recognised as such by Miraldo et al. (2013) on the basis of genetic and morphological evidence and the low frequency of hybrids. Subsequent genetic and morphological research (summarised by Speybroeck et al. 2020) supports this arrangement.

Many database records of this species, as well as literature postdating the Miraldo revision (e.g. Mateo 2015) still include T. nevadensis within T. lepidus, and consequently reliable data on this species remains scarce (Sancho and Mateo 2020).

The Sierra Nevada Ocellated Lizard is endemic to Europe, where it is found in mainland Spain. It is assessed as Least Concern on the basis that this species has an extent of occurrence of more than 60,000 km², within which it is widespread, adaptable, and still abundant. It has nevertheless been highlighted as a species of conservation concern and widespread declines reported in ocellated lizards presumably include subpopulations of this species.

This species is endemic to southern Europe, where it is restricted to southeastern Spain. It occurs mainly in the provinces in Alicante, Murcia and Almería, with a distribution limit following the northern contour of the Sierra Nevada range (Carretero and Salvador 2017). Its northeastern range limit has not been clarified with genetic analysis (Carretero and Salvador 2017). Within this area, it is mainly associated with the Baetic mountain ranges (Miraldo et al. 2013), with an elevational range from sea level to 2,400 m asl (Carretero and Salvador 2017). Its northern range limit has generally been accepted as the coast of Castellón province, but records (based on morphological identification) from Tereul in Aragon and from Tarragona in Catalonia extend its range 80 km north parallel to the coast and it is likely to occur in warm valleys further inland in these areas, as well as along the coastal plain south of Tarragona (Sancho and Mateo 2020). These authors suggest that these subpopulations were most likely overlooked as a consequence of taxonomic confusion or under sampling in this area, but hypothesise that genuine recent range expansion may have taken place as the new records lie along a migration corridor used by birds and carnivorous mammals. It is found on the offshore islands Paloma, Olla and Mitjana - each of less than a hectare in area (Mateo 2015).

There is no data on the abundance or population status of this species (Carretero et al. 2017). Most available data on ocellated lizard population density and trends refers to the distinct species Timon lepidus, with which this was previously confused. That species has been described as being abundant in much of the southern Iberian Peninsula, with recorded densities of around 60 individuals / ha on the mainland and 136-208 on Spanish islands (Mateo 2015, Galán 2003). There is a "fairly general impression" that ocellated lizards - presumably including subpopulations now referred to this species - have undergone significant, widespread declines in abundance over several decades.

This is an ecologically highly plastic species that has adapted even to extreme aridity: the three Mediterranean islands on which this species occurs have a Saharan rainfall regime and are "almost devoid of vegetation" (Mateo 2015). On the Spanish mainland it occurs on coastal sandbanks, shrubland on clay and rocky soils, thickets, crop margins and in areas close to human buildings, avoiding only areas of dense forest and very humid situations (summarised in Carretero and Salvador 2017). The main constraint on its distribution appears to be precipitation, as it is limited to arid areas with less than 300 mm precipitation a year (Nunes et al. 2011). Escoriza and Amat (2016) found that this species has narrower ecological tolerances than several other large European species, including its closest relative the ocellated lizard. In common with the ocellated lizard it exhibits an association with rabbit burrows for shelter, but appears to be less strictly reliant on these than its relative and also makes use of stone slabs and plant debris (Carretero and Salvador 2017). Clutch size varies between 6 and 17 eggs, with a mean among subpopulations from Alicante, Murcia and Granada of 12.9 (Castilla and Bauwens 1989), and a second clutch may be laid in suitable years (Carretero and Salvador 2017).

It is mainly insectivorous (though includes other arthropods, including millipedes and spiders, in the diet), with large beetles comprising the major part of the diet and hymenopterans and orthopterans a smaller proportion (Carretero and Salvador 2017). Animals also eat fruit, and this may be an important part of the diet on Paloma due to the low densities of arthropods on the island (Carretero and Salvador 2017). More occasionally, small vertebrates such as passerine birds and lizards may be taken (Carretero and Salvador 2017). It exhibits active prey selection, favouring beetles (but with no specific preference for dung beetles, which have been suggested as an important part of ocellated lizard diets - e.g. by Grillet et al. 2010), millipedes and orthopterans, and avoids isopods and ants (Carretero and Salvador 2017).

The related Ocellated Lizard has a recorded age in captivity of 14 years and 5 months (Slavens and Slavens 1992, 1993), with a report of a still-living (in 2012) zoo specimen having reached 28 years of age (Jesus 2012); wild specimens of up to 11 years have been recorded (Mateo 2015). On average, adults appear to be much shorter-lived, with the majority of the population being at most five years of age (Mateo 2015). In an unpublished study this author recorded only 18 individuals of 389 with verifiable ages greater than five years, and no female lived longer than six years. There may be regional variation, with average maximum ages of five to seven years recorded in different areas (summarised in Mateo 2015). In general sexual maturity is reached at 32-33 months, but younger ages have been reported and in one subpopulation most individuals are mature at 21 months (Mateo 2015). The Sierra Nevada Ocellated Lizard may mature later than its close relative: the only data provided by Carretero and Salvador (2017) is of a female that began reproducing after its fourth winter.

This species is confined to an area associated with high levels of tourist pressure and land use change that are likely to reduce habitat suitability for this species, such as urbanisation and the construction of high densities of greenhouses for agriculture (Miraldo et al. 2013, Carretero et al. 2017). Miraldo et al. (2013) suggest that it may be of particular concern due to its comparatively restricted range relative to its widespread, declining relative, lying in one of the more heavily-impacted parts of that species' former Iberian range. Rat introduction may threaten island subpopulations (Carretero and Salvador 2017).

In common with the Ocellated Lizard it is subject to persecution by local hunters and farmers based on a mistaken belief that these essentially insectivorous lizards prey on bees, partridge eggs and young rabbits (Grillet et al. 2010, Mateo 2015, Carretero et al. 2017). This reputation resulted in a deliberate eradication campaign in the 1970s, and delayed measures to protect it in Spain (Mateo 2015). While legal persecution has ceased, in several areas poisoning and shooting is still used to kill lizards (Mateo 2015).

Ocellated lizards are included in the pet trade and have been among the most popular lizards among European hobbyists since the late 19th Century (Mateo 2015). Legal trade is presently only permitted in captive-bred specimens. Illegal collection was ongoing at least until the 1990s, and if not presently ongoing the resumption of this activity is plausible in future (Tatin et al. 2016). The species was heavily harvested for scientific collections as recently as the 1970s, but it is unlikely that this is ongoing in any significant numbers (Mateo 2015). Ocellated lizards have been harvested for food; although probably once widespread this is now restricted to a localised activity outside the range of the Sierra Nevada Ocellated Lizard (Mateo 2015).

Further studies are needed in order to better-understand the population status of this species. Surveys - including genetic confirmation of the identity of sampled subpopulations - are needed in and around Castellón province, Tereul and Tarragona to clarify the species' northern range limit (Sancho and Mateo 2020). It is protected by Spanish legislation and listed on Annex II of the Bern Convention under the name Lacerta lepida, but is not included in the EU Habitats Directive (Mateo 2015). It is present in a number of protected areas. The most effective general protection measures for ocellated lizards are the maintenance and restoration of structurally complex habitats (Mateo 2015).