The present study aims to resolve the existing research gaps on olive pomace (OP) hydrochars application as a fuel by evaluating its molecular structures (FTIR and solid NMR analysis), identifying influential characteristics (Pearson correlation analysis), process optimization (response surface methodology), slagging–fouling risks (empirical indices), and combustion performance (TG-DSC analysis). The response surfaces plot for hydrothermal carbonization (HTC) of OP slurry performed in a pressure reactor under varied temperatures (180–250 °C) and residence times (2–30 min) revealed 250 °C for 30 min to be optimal conditions for producing hydrochar fuel with a higher heating value (32.20 MJ·Kg−1) and energy densification ratio (1.40). However, in terms of process efficiency and cost-effectiveness, the optimal HTC conditions for producing the hydrochar with the highest energy yield of 87.9% were 202.7 °C and 2.0 min. The molecular structure of hydrochar was mainly comprised of aromatic rings with methyl groups, alpha-C atoms of esters, and ether bond linkages of lignin fractions. The slagging and fouling risks of hydrochars were comparatively lower than those of raw OP, as indicated by low slagging and fouling indices. The Pearson correlation analysis emphasized that the enrichment of acid-insoluble lignin and extractive contents, carbon densification, and reduced ash content were the main pivotal factors for hydrochar to exhibit better biofuel characteristics for energy applications.