Nanobubbles represent a special colloidal system, as they have high stability and large specific surface areas. The preparation of nanobubbles is currently a hot research topic, as it crucial to investigate their characteristics and expand their applications. This article explains the mechanism of generating nanobubbles based on chemical and physical methods, introduces their basic composition’s structure and properties, summarizes the methods of preparing bulk nanobubbles (BNBs) and surface nanobubbles (SNBs), and clarifies the preparation principles and techniques. Seven practical applications of nanobubbles are cited in this paper, including their use as ultrasonic contrast agents in medical imaging, drug delivery systems in drug transportation, promoters of plant growth by affecting plant respiration and water absorption at the roots, tools to remove dirt from surfaces by generating energy during nanobubble bursting, producers of high-density negative ions and free radicals to react with pollutants in wastewater, tools to reduce the resistance of the fluid flow through channels by lowering the internal friction, and means of improving the mineral flotation recovery rate by enhancing the absorption capacity of bubbles to minerals. Finally, the future development of nanobubble preparation technology is discussed, including their roles in optimizing equipment and preparation methods; improving the quantity, efficiency, stability, controllability, and homogeneity of nanobubble generation; and promoting the industrial production of nanobubbles.