Lithium niobate is a ferro- and piezoelectric material with excellent optical properties and a wide variety of applications. The defect structures of congruent and Mg-doped crystals are still under intense discussion. In this work, undoped lithium niobate and magnesium-doped lithium niobate grown from congruent melt with the addition of 0 to 9 mol% MgO were investigated by infrared absorption, establishing the dependence of the absorbance on the Mg-doping level in two bands related to OH− stretching vibrations. The absorption band at 3485 cm−1 peaks at a MgO concentration in melt of 1 mol% and vanishes for MgO concentrations above the threshold level for optical damage suppression (4.8 mol%). A corresponding peak occurs in the minimum yield of the 7Li(p,α)4He reaction during ion channeling measurements, indicating a maximum of disorder in the Li sublattice. A possible explanation for this correlation is the attribution of this absorption band to ilmenite stacking fault sequences instead of isolated NbLi antisites in undoped and low-doped material. On the other hand, the OH− absorption band at 3535 cm−1 stays weak up to the MgO concentration threshold, and then increases, hinting to a defect related to the increase of vacancies due to the lack of charge compensation.