This study set out to investigate the impact of aluminum-magnesium hydroxycarbonates (LHs) with various Mg/Al ratios on the formation of hybrid pigments. The colorants were also evaluated for their flame-retardant properties. In the first part of the study, the hybrid pigments were submitted to comprehensive characterization using time-of-flight secondary ion mass spectrometry (TOF-SIMS), 27Al solid-state nuclear magnetic resonance (NMR) spectroscopy, powder X-ray diffraction analysis (XRD), thermogravimetric analysis (TGA), and N2 adsorption as well as scanning and transmission electron microscopy (SEM/STEM). The relationship between the Mg/Al ratios of the LH carriers and the formation of lake pigments was explored. The TOF-SIMS spectrum of LH modified with azo chromophore (AC) showed an intense peak for the C19H15O5N2Mg+ ion, confirming metal-dye interactions. Incorporation of the organic colorant into the LH host enhanced its resistance to dissolution in organic solvent (butyl acetate), as well as improving its color stability under elevated temperatures. The second part of the study evaluated the flammability of ethylene-norbornene (EN) composites, in which the pigments had been applied as colorants. Cone calorimetry revealed that addition of the organic-inorganic pigments resulted in a substantial improvement of the flame retardancy, reflected by the decreased values of the heat release rate (HRRMAX) and total heat release parameter (THR) of the EN composites in comparison to a neat sample (unfilled EN).