The most obvious thing about fishing that's good for your mental health is that you can go into the wilderness and unplug from the daily grind. Sure, you can fish in a town or on the shores of a resort lake, but you can also find an out-of-the-way pond somewhere to drop a line and just commune with nature.
Fishing also requires concentration, awareness, and focus, making it a good way to ameliorate anxiety and other mental health conditions. By being able to concentrate on something enjoyable rather than "the rat race," you can benefit from the relaxation fishing promotes.
Additionally, during the pandemic, fishing was found to have beneficial effects on the stress levels associated with COVID-19. Nearly two-thirds of all anglers reported less stress regarding the pandemic while fishing. Further, more than a quarter of all respondents to the study linked above said that they fished more often during the pandemic because of its therapeutic effect. They said that it was a great way to distance themselves from the "doom and gloom" of pandemic reporting as deaths climbed into the hundreds of thousands. In fact, the researchers recommended to the government that recreational fishing not be restricted. Rather, the researchers' recommendation was that sanitary conditions be improved at known fishing holes and/or their accompanying campgrounds and other accommodations.
When it comes to people who experience post-traumatic stress disorder, fishing, along with other outdoor activities, has been shown to have a beneficial effect. The concentration required not only helps with the processing of traumatic memories but also with the formation of new memories. Nowhere can this be seen better in the Parmenter study linking therapeutic fly-fishing with eye movement desensitization and reprocessing, otherwise known as EMDR. The key to EMDR is the changing of bad, traumatic memories into normal memories by helping the brain to reform those memories in a healthy way. The addition of fly-fishing to the equation simply helps with the creation of new, fun memories and reinforces the rewiring of the old memories.
Fishing is also an exercise in problem-solving. For example, a lure that you cast for bass this month might not be the fish's preference next month. Certain kinds of bait and/or lures are only effective in particular biomes. Others only work well during certain weather or temperatures. Some fish respond well to one lure another in shallow water among the reeds but not when trolling with a boat in deep water. Learning always has a beneficial effect, too, because of the feeling of accomplishment. Such a sense of accomplishment is therapeutic because it leads to better self-esteem and a grounded philosophy. Further, it can reinforce someone's sense of purpose in the world. And, fishing provides you with the opportunity to learn while relaxing, unplugging, and generally feeling better about yourself while remaining in touch with nature.
As can be seen, fishing is a useful tool in the treatment of mental health conditions and serves to help people to develop positive feelings of self-worth and usefulness.