Changes in water balance are some of the most critical challenges that aeroterrestrial algae face. They have a wide variety of mechanisms to protect against osmotic stress, including, but not limited to, downregulating photosynthesis, the production of compatible solutes, spore and akinete formation, biofilms, as well as triggering structural cellular changes. In comparison, algae living in saline environments must cope with ionic stress, which has similar effects on the physiology as desiccation in addition to sodium and chloride ion toxicity. These environmental challenges define ecological niches for both specialist and generalist algae. One alga known to be aeroterrestrial and euryhaline is Stichococcus bacillaris Nägeli, possessing the ability to withstand both matric and osmotic stresses, which may contribute to wide distribution worldwide. Following taxonomic revision of Stichococcus into seven lineages, we here examined their physiological responses to osmotic and matric stress through a salt growth challenge and desiccation experiment. The results demonstrate that innate compatible solute production capacity under salt stress and desiccation tolerance are independent of one another, and that salt tolerance is more variable than desiccation tolerance in the Stichococcus-like genera. Furthermore, algae within this group likely occupy similar ecological niches, with the exception of Pseudostichococcus.