Given that the problem of contaminated soil continues to grow, the development of effective control and remediation measures has become imperative, especially for heavy-metal-contaminated soil. Biochar and modified biochar are eco-friendly and cost-effective remediation materials that are widely used in the remediation of contaminated soil. This review provides an overview of the different raw materials used in the preparation of biochar as well as the modification of biochar using various synthesis methods, highlighting their differences and providing recommendations for biochar and modified biochar as applied toward ameliorating pollution in soil contaminated by heavy metals. We also explore the effects of the physicochemical properties of raw materials, pyrolysis temperature, additives, and modification methods on the properties of the resulting biochar and modified biochar, and systematically present the types of soil and operating factors for repair. Moreover, the mechanisms involved in remediation of heavy-metal-contaminated soil by biochar and modified biochar are outlined in detail, and include adsorption, complexation, precipitation, ion exchange, and electrostatic attractions. Finally, the corresponding monitoring technologies after remediation are illustrated. Future directions for studies on biochar and modified biochar in the remediation of contaminated soil are also proposed to support the development of green environmental protection materials, simple preparation methods, and effective follow-up monitoring techniques.