Dissolved organic matter and its colored component, Colored Dissolved Organic Matter (CDOM), play a major role in global carbon budgets, and their fluxes provide an essential link between terrestrial and aquatic biogeochemical cycles. Satellite observations can uniquely capture the hydro‐biogeochemical connectivity of terrestrial and aquatic landscapes, across scales. Yet, accurate satellite retrievals of CDOM and dissolved organic carbon (DOC) dynamics remain challenging in urbanized estuaries and coasts. Here, we present an advanced unified algorithm for space‐based retrieval of coastal CDOM and DOC dynamics and its application in Long Island Sound—one of the world's most heavily urbanized estuaries that is becoming increasingly vulnerable to climate change stressors. A rich bio‐optical data set, encompassing a wide range of environmental conditions, was integrated into the algorithm training to retrieve DOC concentrations and CDOM spectral shape (i.e., spectral slope S275–295)—a proxy for DOC quality. The new algorithms were applied to full‐resolution satellite imagery from the Sentinel‐3 Ocean and Land Color Instrument (OLCI) after thoroughly evaluating the performance of six ocean color atmospheric correction approaches (ACOLITE, BAC, C2RCC, MUMM, l2gen, and Polymer). Evaluation of the algorithms yielded mean absolute percent differences of 28%, 12%, and 10% for aCDOM(300), S275–295, and DOC, respectively. Application of the algorithms to multi‐year satellite OLCI imagery captured, for the first time, the coupled impact of seasonal transitions, wind regimes, freshwater inputs, anthropogenic disturbances, and hydrological extremes (both intense precipitation and droughts) on DOC fluxes and CDOM quality at the ecosystem scale. Results have important implications for improved predictions of coastal biogeochemical fluxes in complex urban−estuary systems.