With the acceleration of global warming and the intensification of anthropogenic activities, numerous lakes worldwide are experiencing reductions in their water surface areas. Yilong Lake, a typical shallow plateau lake located on the Yunnan–Guizhou Plateau in China, serves as a crucial water resource for local human production, daily life, and ecosystem services. Hence, long-term comprehensive monitoring of its dynamic changes is essential for its effective protection. However, previous studies have predominantly utilized remote sensing data with limited temporal resolution, thus failing to reflect the long-term variations in Yilong Lake’s water body. This study employs high temporal resolution monitoring, utilizing multi-source satellite data (e.g., KeyHole, Landsat, HJ-1 A/B) images spanning from 1965 to 2022 to investigate the changes in Yilong Lake’s surface area, analyzing the influencing factors and ecological impacts of these changes. The results indicate that from 1965 to 2022, Yilong Lake’s water surface area decreased by 8.33 km2, with a maximum surface area of 40.49 km2 on 7 January 1986, and a minimum surface area of 10.64 km2 on 20 April 2013. These changes are characterized by three significant phases: (1) a rapid shrinking phase (1965–1979); (2) a fluctuating shrinking period (1986–2016); and (3) an expanding recovery phase (2016–2022). Spatially, the most significant shrinkage was observed along the southern and southwestern shores of the lake. The driving factors varied across different periods: sunshine duration was the dominant influence during the rapid shrinking phase (1965–1979), accounting for 82% of the changes; population and cropland area were the main drive factors during the fluctuating shrinking period (1986–2016), accounting for 56% of the changes; and during the expanding recovery phase (2016–2022), the population accounted for 75% of the changes in the lake’s surface area. Currently, the protection of Yilong Lake depends on water supplementation and strict regulation of outflow, resulting in the lake exhibiting characteristics similar to a reservoir. This long-term investigation provides baseline information for future lake monitoring. Our research findings can also guide decision-makers in urban water resource management and environmental protection, ensuring the scientific and rational use of watershed water resources, effectively curbing the shrinkage of Yilong Lake, and achieving long-term sustainable restoration of the lake’s ecology.