Carbon quantum dots are a novel form of carbon material. They offer numerous benefits including particle size adjustability, light resistance, ease of functionalization, low toxicity, excellent biocompatibility, and high-water solubility, as well as their easy accessibility of raw materials. Carbon quantum dots have been widely used in various fields. The preparation methods employed are predominantly top-down methods such as arc discharge, laser ablation, electrochemical and chemical oxidation, as well as bottom-up methods such as templates, microwave, and hydrothermal techniques. This article provides an overview of the properties, preparation methods, raw materials for preparation, and the heteroatom doping of carbon quantum dots, and it summarizes the applications in related fields, such as optoelectronics, bioimaging, drug delivery, cancer therapy, sensors, and environmental remediation. Finally, currently encountered issues of carbon quantum dots are presented. The latest research progress in synthesis and application, as well as the challenges outlined in this review, can help and encourage future research on carbon quantum dots.