High-dimensional nonlinear dynamical systems, including neural networks, can be utilized as computational resources for information processing. In this sense, nonlinear wave systems are good candidates for such computational resources. Here, we propose and numerically demonstrate information processing based on nonlinear wave dynamics in microcavity lasers, i.e., optical spatiotemporal systems at microscale. A remarkable feature is its ability of high-dimensional and nonlinear mapping of input information to the wave states, enabling efficient and fast information processing at microscale. We show that the computational capability for nonlinear/memory tasks is maximized at the edge of dynamical stability. Moreover, we show that computational capability can be enhanced by applying a time-division multiplexing technique to the wave dynamics. Thus, the computational potential of the wave dynamics can sufficiently be extracted even when the number of detectors to monitor the wave states is limited. In addition, we discuss the merging of optical information processing with optical sensing, revealing a novel method for model-free sensing by using a microcavity reservoir as a sensing element. These results pave a way for on-chip photonic computing with high-dimensional dynamics and a model-free sensing method.