The maintenance of skeletal muscle plasticity upon changes in the environment, nutrient supply, and activity depends on the crosstalk between metabolic and structural adaptations. Here, we establish a role for the orphan nuclear receptor Nr2f6 in both processes. Nr2f6 overexpression leads to an atrophic state, sharply decreasing muscle mass and myofiber content, which is accompanied by an impairment in force production. These functional phenotypes were followed by the establishment of an inflammatory molecular signature, and a decrease in genes involved in oxidative metabolism and contractility. Conversely, Nr2f6 depletion increased myocytes' oxidative capacity and protected against lipid-induced cell death. In addition, Nr2f6 regulated core components of the cell division machinery, decoupling muscle cell proliferation from differentiation. Collectively, our findings define a novel role for Nr2f6 as a molecular transducer conferring the balance between skeletal muscle structure and oxidative capacity.