The present research investigates the diversity, distribution, and water quality of aquatic insects in several lakes in Hyderabad, Telangana, India. The main emphasis is placed on three principal families: Noteridae, Dytiscidae, and Hydrophilidae, in addition to many species from the aquatic Hemiptera family. The research offers valuable insights into the ecological well-being and habitat variety of 21 distinct lakes by performing field surveys and analyzing the existence of various species in these aquatic systems. In addition, water quality measures like pH, dissolved oxygen, and nutrient levels were evaluated in order to assess their influence on the dispersal of aquatic insects. The results reveal strong positive correlations between these parameters and species diversity, with Nitrate exhibiting the highest correlation across all seasons (r ≈ 0.997 in summer). Optimal pH levels (r ≈ 0.992 in monsoon) and elevated Dissolved Oxygen (r ≈ 0.976 in summer) significantly enhance species diversity. Phosphate also contributes positively (r ≈ 0.953 in monsoon), though to a lesser extent. These findings underscore the importance of maintaining and monitoring water quality to support biodiversity in aquatic ecosystems.