Compose supports declaring default environment variables in an environment file named .env placed in the folder where the docker-compose command is executed (current working directory).
These syntax rules apply to the .env file:
env file to be in VAR=VAL format.# are processed as comments and ignored.The environment variables you define here are used for variable substitution in your Compose file, and can also be used to define the following CLI variables:
COMPOSE_API_VERSIONCOMPOSE_CONVERT_WINDOWS_PATHSCOMPOSE_FILECOMPOSE_HTTP_TIMEOUTCOMPOSE_TLS_VERSIONCOMPOSE_PROJECT_NAMEDOCKER_CERT_PATHDOCKER_HOSTDOCKER_TLS_VERIFYNotes
Values present in the environment at runtime always override those defined inside the
.envfile. Similarly, values passed via command-line arguments take precedence as well.Environment variables defined in the
.envfile are not automatically visible inside containers. To set container-applicable environment variables, follow the guidelines in the topic Environment variables in Compose, which describes how to pass shell environment variables through to containers, define environment variables in Compose files, and more.
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https://docs.docker.com/compose/env-file/