Farol is the Portuguese for "lighthouse" and this is where the Praia do Farol gets its name. The beach wraps around the sandy headland at the mouth of the Mira River which is home to Vila Nova de Milfontes' somewhat underwhelming lighthouse.
The beach is reasonably sheltered from wind and waves on the river-facing side, perhaps a little more exposed than neighbouring Praia da Franquia. As you travel around the headland the beach becomes more exposed to the Atlantic waves, although there are quite a few rocks offshore to break up the swell. At low tide these rocks become exposed and are a great place for poking around looking for sea creatures.
Praia do Farol has plenty of facilities including a beach front restaurant (A Choupana) and a seasonal lifeguard service that runs during the summer months.