Masdevallia bicolor is accepted species in  the family Orchidaceae  subfamily: Epidendroideae, tribe: Epidendreae, subtribe: Pleurothallidinae,  
Genus Masdevallia   subgenus Polyantha  section: Alaticaules   subsection: Alaticaules 
Infraspecific taxa recognized within Masdevallia bicolor: infraspecific taxa
This species is found in W. South America to NW. Venezuela.