A tea caddy is a box, jar, canister, or other receptacle used to store tea. Iron Style Lotus Tea Caddy: a must-have item for anyone thinking of buying and storing loose leaf tea. Why is the tea caddy so important? because the quality and the flavour of your loose leaf tea depends on how you store it. Tea leaves will easily absorb other aromas. Place them in your tea caddy, and the flavour will never fade. That is why an airtight tea caddy is essential. Also it will protect your tea from moisture, and from the sunlight that may otherwise cause it to fade.