Zubiri is a small village and a major stop on the Camino and really exists because of the pilgrimage.
You will find many places to stay, though in the high season, they can fill up. People are very helpful here in making sure you find a place, including calling around to nearby hostels and hotels a few kilometers away. (A good lesson to learn early on the Camino is to consider staying in villages and towns that are not the traditional stopping points.)
The setting is lovely, though for after most of the day of passing through a thick and intimate forest, the valley opens up to reveal the village of Zubiri nestled along the Arga river. This river flows onward to Pamplona, 22 kilometers away.