Like so many village names in this region, Nieby also derives from the Danish language meaning "new village". Nieby is located on a peninsula at the entrance of the Flensburg firth and surrounded by diverse nature as the village borders on the nature reserve Geltinger Birk. Small thatched and wooden houses fit harmoniously into the landscape. Nieby is also a great place for surfers who enjoy the waves near Falshöft and the vast expanse of the Baltic Sea.