This study represents a comprehensive review about the structural features of graphene oxide (GO) and its significance in environmental applications. Two dimensional (2D) GO is tremendously focused in advanced carbon-based nanomaterials for environmental applications due to its tunable physicochemical characteristics. Herein, we report foundational structural models of GO and explore the chemical bonding of oxygen moieties, with graphite basal plane using various characterization tools. Moreover, the impact of these oxygen moieties and the morphology of GO for environmental applications such as removal of metal ions and catalytic, antibacterial, and gas sensing abilities have here been critically reviewed for the first time. Environmental applications of GO are highly significant because, in the recent era, the fast progress of industries, even in the countryside, results in air and water pollution. GO has been widely investigated by researchers to eradicate such environmental issues and for potential industrial and clinical applications due to its 2D structural features, large surface area, presence of oxygen moieties, nonconductive nature, intense mechanical strength, excellent water dispersibility, and tunable optoelectronic properties. Thence, particular emphasis is directed toward the modification of GO by varying the number of its oxygen functional groups and by coupling it with other exotic nanomaterials to induce unique properties in GO for potential environmental remediation purposes.