New BVR photometric and high-resolution spectroscopic observations of V505 Lac are presented with Transiting Exoplanet Survey Satellite (TESS) photometric data. The orbital period has experienced a secular decrease during the past 16yr. A clear anticorrelation in the primary and secondary eclipse timing variation (PSETV) obtained from the TESS data is also identified. A double-lined radial velocity (RV) curve is secured, and the effective temperatures of the less- and more-massive stars (Stars 1 and 2, respectively) are measured. Using a spectral subtraction technique, excess emissions are detected in the time-series CaII H and K and H{alpha} lines for Star 2. Simultaneous analysis of the light and RV curves using the Wilson-Devinney (WD) code reveals that V505-Lac is a photospherically and chromospherically active W-subtype contact binary system. The component-star masses and radii are determined to an accuracy of approximately 1%. The WD spot model is individually applied to 221 light curves segmented from the TESS data so as to derive the spot parameters of a cool spot on Star 2. The combined variations in both longitude and colatitude among the spot parameters appear to be strongly associated with those of both the anticorrelation in the PSETV and the O'Connell effect in the TESS light curves. Robust negative linear relationships between the PSETV anticorrelation size and the O'Connell effect magnitude are found for the first time. Mass-radius, mass-luminosity, and mass ratio-mass diagrams of contact binaries, along with the mass ratio frequency distribution, are presented in an attempt to elucidate the evolutionary characteristics of these systems.