Abstract: Research has shown that FG’s physicochemical properties are closely related to its honeycomb carbon skeleton structure and carbon-fluorine bonds. Therefore, this article first systematically summarizes the influence of fluorine content and carbon-skeleton microstructure on FG’s lattice parameters, chemical stability, and physical properties; then, it discusses the possible regulation mechanism of its mechanical properties and tribological characteristics. FG’s preparation process is a crucial factor affecting and regulating its microstructure and physicochemical properties. Therefore, this article subsequently summarizes the latest research progress on preparation of FG based on the two basic strategies (exfoliation and fluorination), expecting to provide guidance for the development of FG’s new preparation processes and hoping to obtain FG materials suitable for different lubrication applications at controllable costs. FG materials have deficiencies in film formation on substrate, medium dispersion, and non-covalent binding strength, which limit their applications in lubrication, corrosion protection, and material reinforcement. Therefore, this article summarizes the main process routes and problems faced in FG material’s physical and chemical modifications, aiming to provide feasible solutions for controllable modification and functionalization. Clarifying the lubrication mechanism is the key to exploring FG material’s application in lubrication and protection fields. Therefore, this article systematically summarizes the research progress on micro and macro lubrication mechanisms of FG, further clarifies the key factors affecting its lubrication performance, and outlines FG’s main application progress in tribological fields, including its applications as water-based or oil-based lubricant additives, polymer fillers, and solid lubricating coatings. Finally, based on the current research hotspots in tribological fields and FG’s reported advantages and disadvantages in lubrication capacities, this article discusses FG’s possible research directions in preparation, modification, application, and protection mechanisms in future.