It lives in humid forests, ranging from the Amazonian lowlands up to an altitude of 2000 m. on the East Andean slopes. While its habitat is being disturbed, parts of its range are within protected areas (e.g., in ManĂº National Park), and it remains widespread and locally fairly common. Flock size 20-30, smaller in breeding season.
In the past, some speculated that it might be conspecific with the Green-cheeked Conure. This was based on an apparent Black-capped–Green-cheeked hybrid found in Puno, Peru, though the identification of this individual (or at least its provenance) must be considered questionable, as beyond the range of the Green-cheeked Conure, which has never been recorded in Peru.