In this study, a poplar high-yield pulp [preconditioning refiner alkaline peroxide mechanical pulp (P-RC APMP)] was used to produce lignin-containing cellulose nanofibril (LCCNF) dispersions through a sequential process of 2,2,6,6-tetramethylpiperidine-1-oxyl radical (TEMPO)-mediated oxidation followed by high pressure homogenization. To produce LCCNF with different lignin contents, sodium hypochlorite loadings of 4−12 mmol/g fiber during TEMPO-mediated oxidation step were explored. The effect of lignin content on morphology, thermal stability, crystallinity, and rheological properties of the produced LCCNFs was investigated. The results showed that the TEMPO-mediated oxidation of cellulose was largely limited to the fiber surface. The residual lignin on the surface of LCCNF was presented as small particles. The increase of lignin content increased the thermal stability and decreased the viscosity of the LCCNF. Moreover, at higher lignin content, greater flocculation and aggregation of fibrils took place, which resulted in lower gel-like characteristics of the resultant LCCNF. The results of water contact angle determination also demonstrated that the increase of lignin content significantly increased the hydrophobicity of the LCCNF.