Multicolor, bright silicon quantum dots (SiQDs)—SiQDs with photoluminescence in a range of colors and quantum yields (PLQYs) of >90%—are promising heavy-metal-free light sources for full-color displays, lighting, and biomedical imaging. Colloidal SiQDs can be used to manufacture devices via printing and roll-to-roll processing. Furthermore, the in vivo use of biodegradable SiQDs and Si nanomaterials, for imaging cancer cells and as drug delivery systems, has been demonstrated. However, a large body of research demonstrates that the photoluminescence (PL) wavelength and PLQY of colloidal SiQDs are dependent not only on the SiQD particle size but also on the methods and/or procedures and chemical reagents used to synthesize them. This is because SiQDs are quite sensitive to both the intrinsic properties of Si and external factors. These intrinsic and external factors can be respectively linked to different PL mechanisms: the quantum confinement effect, which produces a slow-decaying “S”-band PL signal, and surface ligand effects, corresponding to fast-decaying “F”-band PL. This review focuses on mechanistic insights into the relationships linking the structures, ligands, and optical properties of SiQDs. Synthesis methods and the application performance of bright multicolor colloidal SiQDs, based on excellent state-of-the-art experimental and theoretical studies, are also reviewed.