Carbon monoxide (CO) is recognized as a signaling molecule in plants, inducing various physiological responses. This article briefly examines the physiological functions of CO in seed biology and seedlings’ responses to environmental stresses. The activity of heme oxygenase (HO), the main enzyme responsible for CO synthesis, is a key factor controlling CO levels in plant cells. CO can influence seed germination by regulating seed dormancy through interactions with genes and hormones. Additionally, CO positively affects seedling growth by enhancing the antioxidant system, thereby increasing resistance to oxidative damage caused by stress. CO has beneficial effects on root development, root length, stomatal closure, and regulation of the photosynthetic system. Its interaction with reactive oxygen species (ROS) mediates hormone- and light-dependent growth processes during the early stages of plant development under stress. Furthermore, CO interacts with other signaling molecules, such as nitric oxide (NO), molecular hydrogen (H2), and hydrogen sulfide (H2S). By gaining a better understanding of the molecular mechanisms underlying these processes, CO can be more effectively utilized to improve seed germination and seedling growth in agricultural practices.