Carbon dots (CDs) are a relatively new type of fluorescent carbon material with excellent performance and widespread application. As the most readily available and widely distributed biomass resource, lignocellulosics are a renewable bioresource with great potential. Research into the preparation of CDs with lignocellulose (LC-CDs) has become the focus of numerous researchers. Compared with other carbon sources, lignocellulose is low cost, rich in structural variety, exhibits excellent biocompatibility, and the structures of CDs prepared by lignin, cellulose, and hemicellulose are similar. This Review summarized research progress in the preparation of CDs from lignocellulosics in recent years and reviewed traditional and new preparation methods, physical and chemical properties, optical properties, and applications of LC-CDs, providing guidance for the formation and improvement of LC-CDs. In addition, the challenges of synthesizing LC-CDs were also highlighted, including the interaction of different lignocellulose components on the formation of LC-CDs and the nucleation and growth mechanism of LC-CDs; from this, current trends and opportunities of LC-CDs were examined, and some research methods for future research were put forward.