The epithet closterostigma is derived from the Greek closteros (spindle-shaped), and stigma (stigma), in reference to the shape of the stigma of this species.

Drosera closterostigma is known from Western Australia, with records from Gingin to Cataby, and eastwards towards Mogumber

It grows in deep white sand which often appears grey in colour due to the presence of humus. Often situated in winter-wet depressions or swampland heath in association with numerous herbaceous species, low shrubs and paperbark trees (Melaleuca sp.).

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