Nanoporous anodic aluminum oxide (AAO) is an important template for 1D nanomaterial synthesis. It is used as an etching template for nanopattern transfer in a variety of contexts, including nanostructured material synthesis, electrical sensors, optical sensors, photonic and electronic devices, photocatalysis, and hardness and anticorrosion improvement. In this review, we focus on various fabrication methods, pore geometry modification, and recent advances of AAO, as well as sensor applications linked to our environment, daily life, and safety. Pore geometry is concerned with the material composition, applied voltage mold, electrolyte type, temperature, and anodizing time during the fabrication of AAOs and for adjusting their pore size and profile. The applied voltage can be divided into four types: direct current anodization (DCA), reverse pulse anodization, pulse anodization (PA), and hybrid pulse anodization (HPA). Conventional AAOs are fabricated using DCA and mild anodization (MA) at a relatively low temperature (−5~15 °C) to reduce the Joule heating effect. Moreover, the issues of costly high-purity aluminum and a long processing time can be improved using HPA to diminish the Joule heating effect at relatively high temperatures of 20–30 °C with cheap low-purity (≤99%) aluminum. The AAO-based sensors discussed here are primarily divided into electrical sensors and optical sensors; the performance of both sensors is affected by the sensing material and pore geometry. The electrical sensor is usually used for humidity or gas measurement applications and has a thin metal film on the surface as an electrode. On the contrary, the AAO optical sensor is a well-known sensor for detecting various substances with four kinds of mechanisms: interference, photoluminescence, surface plasma resonance, and surface-enhanced Raman scattering (SERS). Especially for SERS mechanisms, AAO can be used either as a solid support for coating metal nanoparticles or a template for depositing the metal content through the nanopores to form the nanodots or nanowires for detecting substances. High-performance sensors will play a crucial role in our living environments and promote our quality of life in the future.