Tin oxide SnO2-based gas sensors have been widely used for detecting typical fault characteristic gases extracted from power transformer oil, namely, H2, CO, CO2, CH4, C2H2, C2H4, and C2H6, due to the remarkable advantages of high sensitivity, fast response, long-term stability, and so on. Herein, we present an overview of the recent significant improvement in fabrication and application of high performance SnO2-based sensors for detecting these fault characteristic gases. Promising materials for the sensitive and selective detection of each kind of fault characteristic gas have been identified. Meanwhile, the corresponding sensing mechanisms of SnO2-based gas sensors of these fault characteristic gases are comprehensively discussed. In the final section of this review, the major challenges and promising developments in this domain are also given.