This study reports on ooid diversity from different lithotypes of the Yacoraite Formation (Salta Group basin) in the Central Andes of north‐west Argentina. The ooids display a variety of internal and external morphologies that may be deployed as proxies for seawater chemistry and hydrodynamic processes. A short review of nomenclature problems is first discussed, followed by presentation of a two‐fold quantitative and qualitative methodology. Our proposed classification addresses internal and external ooid characters in order to understand growth in response to various environmental processes at an individual particle level. This classification allows discrimination between a variety of morphologies, but also evaluation of the complexity of the processes involved in ooid formation as seen in the fossil record. This study evaluates whether the ooids present within the Yacoraite Formation share similarities with ooids formed in marine versus marine lagoon and/or lacustrine environments. A possible lacustrine interpretation finds its origin in the diverse assemblage of ooid morphotypes present, which exceeds the variations described for marine ooids. However, growth paths and occurrence of various compound morphologies point to intense marine recycling, suggesting little accommodation. Together with other sedimentological characteristics, for example, bi‐directional cross‐bedding, tidal shoals, hummocky cross‐stratification and exposure surfaces, these features suggest that marine processes had an impact on the sediments. Therefore, the ooid assemblage of the Cretaceous Yacoraite Formation was most likely formed in a shallow coastal lagoon in the framework of an epicontinental sea that at times experienced marine flooding events. A detailed evaluation of processes involved in oolite formation is needed in order to improve the stratigraphic and palaeoenvironmental understanding of ooid formation through time. This includes examining alternating constructive and destructive stages, early binding and cementation, reworking, recycling and averaging processes.