Background: Innovation and entrepreneurship education is the fundamental way to apply talent training in colleges and universities. The improvement of innovation and entrepreneurship ability is the embodiment of the success of innovation and entrepreneurship education. This paper discusses the influence mechanisms of entrepreneurial consciousness, entrepreneurial motivation, and entrepreneurial cognition on innovation and entrepreneurship ability. It analyzes the effect of the entrepreneurial atmosphere on the relationship between entrepreneurial consciousness, entrepreneurial motivation, and innovation and entrepreneurship ability. Methods: Based on the data from 1944 questionnaires, we used SPSS24.0 and AMOS22.0 software to analyze the composition and influencing factors of college students’ innovation and entrepreneurship ability. We constructed a structural equation model for empirical research. Results: The results showed that the scale of innovation and entrepreneurship ability had good reliability and validity. Entrepreneurial consciousness, entrepreneurial motivation, and entrepreneurial cognition had significant positive effects on innovation and entrepreneurship ability. Entrepreneurial atmosphere plays a moderating effect in the process that entrepreneurial consciousness affects innovation and entrepreneurship ability and entrepreneurial motivation affects innovation and entrepreneurship ability. Finally, based on China’s national conditions, we proposed suggestions to improve college students’ innovation and entrepreneurship ability from the two aspects of education and base construction to provide a reference for colleges and universities to transport entrepreneurial talents to society.