Lime was used by farmers to neutralise their soil’s acidity, as a wash for exterior walls and as an ingredient for mortar. The chief fuel used for burning was cheap coal dust, known as culm. This, along with the lime, was shipped across from Wales, as the Welsh limestone burned at a lower temperature than the local stone. This was therefore a cheaper option despite the transport costs.

Layers of lime and fuel were placed into the top of the kiln, then set alight from the base up. As the lime burned, it produced calcium oxide, or "quicklime," which then ran out through the "draw hole." The process could take up to 4 days, but the end result was ideal for Clovelly’s cottages, as its porosity permitted the walls to breathe in the maritime climate without allowing any moisture in.

The kiln here has not been used since 1911, but lime mortar is still used extensively in the upkeep and restoration of the village’s buildings.

Adjacent to the limekiln is an interesting old cottage built out over the harbour and known locally as "Crazy Kate’s Cottage." This is the oldest cottage in Clovelly and was reputedly owned by a fisherman’s wife, who went insane when she learned of her husband’s death whilst fishing offshore in the 16th century. Following his death, she apparently terrorised the village with her unfathomable behaviour till her own demise several years later.

By 1804, Clovelly was a smugglers’ haven, its isolated harbour an ideal location to bring booty ashore on moonless nights. The caves along the shoreline were also useful for storing contraband away from the ever-inquisitive land-based Excise men and the Revenue officers who patrolled the coastline with their fast cutters.

Fishing has played an equally important, if more law-abiding, part in Clovelly’s history. For hundreds of years, the village was famous for the large quantities of herring and cod, although of course, fishing then, as now, was always a risky business. The worst storm on record occurred in October 1821, when 40 boats were smashed to pieces upon the rocks, with the loss of 35 men.

Charles Kingsley published his famous novel "Westward Ho!" in 1855, featuring Clovelly in his story. The village grew in popularity, and by the 1920s, paddle steamers regularly made the crossing from Ilfracombe and South Wales. At that time, South Wales was temperate, and many day-trippers made the trip predominantly for the opportunity to drink beer and liquor in the village before returning home in a state of inebriation.

From 1870, the village was equipped with its own lifeboat. Coastguards existed prior to this time, but their craft were slow and, more often than not, arrived too late to effect a rescue. From 1908 until 1934, the "Elinor Roget II" performed this role. She was a 37-foot open boat with 12 oars and a crew of 15. The boat would be rowed out to sea before the sail was unfurled, but in winter weather, the oarsmen would often freeze without cover and records tell of several men who died of exposure. Despite the risks, competition to man the boat was fierce, with each person being paid 30 shillings for a night’s work, a princely sum in those days.

In 1958, the RNLI (Royal National Lifeboat Institution) withdrew the service from the village, upon which Clovelly raised funds to purchase and equip her own boat, maintained by public donation. In 2000, the RNLI rescinded their decision and a new lifeboat was named by the Duke of Kent. Manned by fully trained volunteers, she is on 24 hour standby from her base behind the red-doored lifeboat station to the right of the harbour.