Based on morphological similarities, Jack Garrick in 1982 grouped this species with the bignose shark (C. altimus) and the sandbar shark (C. plumbeus), while Leonard Compagno in 1988 placed it as the sister species of the grey reef shark (C. amblyrhynchos). A phylogenetic analysis based on allozyme data, published by Gavin Naylor in 1992, indicated that the Caribbean reef shark is the sister taxon to a clade formed by the Galapagos shark (C. galapagensis), dusky shark (C. obscurus), oceanic whitetip shark (C. longimanus), and the blue shark (Prionace glauca). However, more work is required to fully resolve the interrelationships within Carcharhinus.
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There is little evidence of territoriality in the grey reef shark; individuals will tolerate others of their species entering and feeding within their home ranges. Off Hawaii, individuals may stay around the same part of the reef for up to three years, while at Rangiroa, they regularly shift their locations by up to 15 km (9.3 mi). Individual grey reef sharks at Enewetak become highly aggressive at specific locations, suggesting they may exhibit dominant behavior over other sharks in their home areas.
Grey reef sharks are fast-swimming, agile predators that feed primarily on free-swimming bony fishes and cephalopods. Their aggressive demeanor enables them to dominate many other shark species on the reef, despite their moderate size. Many grey reef sharks have a home range on a specific area of the reef, to which they continually return. However, they are social rather than territorial. During the day, these sharks often form groups of five to 20 individuals near coral reef drop-offs, splitting up in the evening as the sharks begin to hunt. Adult females also form groups in very shallow water, where the higher water temperature may accelerate their growth or that of their unborn young. Like other members of its family, the grey reef shark is viviparous, meaning the mother nourishes her embryos through a placental connection. Litters of one to six pups are born every other year.
One useful definition distinguishes reefs from mounds as follows: Both are considered to be varieties of organosedimentary buildups – sedimentary features, built by the interaction of organisms and their environment, that have synoptic relief and whose biotic composition differs from that found on and beneath the surrounding sea floor. Reefs are held up by a macroscopic skeletal framework. Coral reefs are an excellent example of this kind. Corals and calcareous algae grow on top of one another and form a three-dimensional framework that is modified in various ways by other organisms and inorganic processes. By contrast, mounds lack a macroscopic skeletal framework (see stromatolite). Mounds are built by microorganisms or by organisms that don't grow a skeletal framework. A microbial mound might be built exclusively or primarily by cyanobacteria. Excellent examples of biostromes formed by cyanobacteria occur in the Great Salt Lake in Utah, and in Shark Bay on the coast of Western Australia.