Fossils are the remains of living organisms that have been preserved in sediments. Lakes are favorable environments for fossilization processes to take place. Dead organisms fall at the bottom of the lake and are soon covered by new sediment and trapped in an anoxic (without oxygen) environment, preventing the oxydation which , otherwise, would lead to the destruction of the remains. There are two types of fossils: trace fossils, which is not the fossil of the organism itself but the trace of its activity or evidence of its behavior, like the stomatolite shown in the image, and the body fossil, which is the fossil evidence of the organism itself.
Source: NASA