In this work, a sustainable method was developed for the production of water-soluble carbon quantum dots employing a green approach. The synthetic protocol was employed using the microwave pyrolysis technique, while lemon peel served as a carbon precursor. Fabrication of highly fluorescent lemon-peel-derived CQDs (LP-CQDs) having inherent nitrogen functionality was validated by X-ray photoelectron spectroscopy, FTIR, X-ray diffraction, Raman spectroscopic analysis, and TEM techniques. The average particle size of fabricated LP-CQDs was 4.46 nm. LP-CQDs yielded a remarkable quantum yield of 49.5%, which displayed excellent salinity, photostability, storage time, conditions, and pH stability. LP-CQDs displayed encouraging results for tetracycline (TC) detection using a PL turn-off approach. The sensitivity of LP-CQDs toward TC was seen in a nanomolar range having a detection limit of 50.4 nM. Method validation was comprehensively studied to ensure the precision of the nanosensor. A complete analysis of different photophysical parameters of LP-CQDs was performed with TC to gain a deeper understanding of the sensing mechanism. Fabricated LP-CQDs showed fluorescence quenching toward TC, elucidated by the inner filter effect (IFE) mechanism. The synthesized nanoprobe demonstrated a lesser detection limit with a broad linear range, enabling facile, cheap, environmentally friendly, and fast detection of TC. Practicality of the detection method was assessed through analysis of real samples, resulting in satisfactory recovery percentage and relative standard deviation with respect to the developed probes. Furthermore, LP-CQDs were used as fluorescent inks and to fabricate paper-based fluorescent strips. This study lays the door for the sensing platform of LP-CQDs toward detection of TC, which may impact the potential role of environmental sustainability.