Polymers obtained from biomass are an interesting alternative to petro-based polymers due to their low cost of production, biocompatibility, and biodegradability. This is the case of lignin, which is the second most abundant biopolymer in plants. As a consequence, the exploitation of lignin for the production of new materials with improved properties is currently considered as one of the main challenging issues, especially for the paper industry. Regarding its chemical structure, lignin is a crosslinked polymer that contains many functional hydrophilic and active groups, such as hydroxyls, carbonyls and methoxyls, which provides a great potential to be employed in the synthesis of biodegradable hydrogels, materials that are recognized for their interesting applicability in biomedicine, soil and water treatment, and agriculture, among others. This work describes the main methods for the preparation of lignin-based hydrogels reported in the last years, based on the chemical and/or physical interaction with polymers widely used in hydrogels formulations. Furthermore, herein are also reviewed the current applications of lignin hydrogels as stimuli-responsive materials, flexible supercapacitors, and wearable electronics for biomedical and water remediation applications.