Wide bandgap semiconductors, particularly In2O3:Sn (ITO), are widely used as transparent conductive electrodes in optoelectronic devices. Nevertheless, due to the strohave beenng scattering probability of high‐concentration oxygen vacancy (VO) defects, the mobility of ITO is always lower than 40 cm2 V−1 s−1. Recently, hydrogen‐doped In2O3 (In2O3:H) films have been proven to have high mobility (>100 cm2 V−1 s−1), but the origin of this high mobility is still unclear. Herein, a high‐resolution electron microscope and theoretical calculations are employed to investigate the atomic‐scale mechanisms behind the high carrier mobility in In2O3:H films. It is found that VO can cause strong lattice distortion and large carrier scattering probability, resulting in low carrier mobility. Furthermore, hydrogen doping can simultaneously reduce the concentration of VO, which accounts for high carrier mobility. The thermal stability and acid–base corrosion mechanism of the In2O3:H film are investigated and found that hydrogen overflows from the film at high temperatures (>250 °C), while acidic or alkaline environments can cause damage to the In2O3 grains themselves. Overall, this work provides insights into the essential reasons for high carrier mobility in In2O3:H and presents a new research approach to the doping and stability mechanisms of transparent conductive oxides.