Lattice‐oxygen redox in layered metal oxide cathodes offers a promising way to exploit high‐energy density sodium‐ion batteries. However, oxidation and reduction of lattice‐oxygen are always asymmetric, showing poor reversibility upon charging and discharging due to the activated oxygen loss and subsequent structural rearrangement. Here, a layered Na0.7[Li0.2Mn0.7Co0.1]O2 (NLMCO) is developed by balancing lattice‐oxygen activity and reversibility, which can deliver a record energy density of 729.7 Wh kg−1, further exceeding the state‐of‐the‐art Na0.75[Li0.25Mn0.75]O2 (NLMO, 638.4 Wh kg−1). In light of electron paramagnetic resonance spectroscopy, in situ differential electrochemical mass spectroscopy, and electrochemical testing results, the highly activated lattice‐oxygen is effectively stabilized in NLMCO without oxygen molecule release while obvious oxygen release is detected in the highly activated NLMO. Benefiting from the enhanced transition metal‐oxygen covalency and reduced band energy gap, the NLMCO electrode demonstrates simultaneously high lattice‐oxygen activity and reversibility, thus resulting in excellent rate and cycling performance, as well as ultra‐high energy density. The findings highlight the critical association of energy density and lattice‐oxygen redox reversibility, which will inspire more interest in anionic redox‐based high‐energy batteries.