Water clarity (Secchi disk depth, SDD), as a proxy of water transparency, provides important information on the light availability to the lake ecosystem, making it one of the key indicators for evaluating the water ecological environment, particularly in nutrient-rich inland lakes. Hulun Lake, the fifth largest lake in China, has faced severe water quality challenges in the past few decades, e.g., high levels of phosphorus and nitrogen, leading to lake eutrophication. However, under such a serious context, the temporal and spatial dynamics of SDD in Hulun Lake are still unclear. In this paper, we obtained the best model input parameters by using stepwise linear regression models to test field measurements against remote sensing band information, and then developed the SDD satellite algorithm suitable for Hulun Lake by comparing six models (i.e., linear, quadratic, cubic, exponential, power, and logarithmic). The results showed that (1) B3/(B1 + B4) [red/(blue-near-infrared)] was the most sensitive parameter for transparency (R = 0.84) and the exponential model was the most suitable transparency inversion model for Hulun Lake (RMSE = 0.055 m, MAE = 0.003 m), (2) The annual mean SDD of Hulun Lake was higher in summer than in autumn, the summer SDD decreased from 2010 (0.23 m) to 2020 (0.17 m), and the autumn SDD increased from 2010 (0.06 m) to 2020 (0.16 m). The SDD in the littoral zones of Hulun Lake was less than that in the central part; (3) meteorological conditions (i.e., precipitation and wind speed) were highly correlated with the variation of SDD. Cropland expansion was the possible reason for the low SDD at the entrance of Hulun Lake flow. The findings of this study have important implications for the development and implementation of ecological protection and restoration strategies in the Hulun Lake basin.