Algal blooms caused by phytoplankton overgrowth pose a common challenge for lake management worldwide. In China, current strategies primarily rely on environmental standards such as the “Environmental Quality Standards for Surface Water”, using total nitrogen and total phosphorus concentrations as key control targets. However, these efforts often yield limited success despite high investment. Notably, in many lakes, algal bloom intensity has increased even as nutrient concentrations stabilized or declined, highlighting a disconnect between static nutrient criteria and the dynamic growth responses of phytoplankton. The theory of limiting factors provides a scientific basis for building a precision control system. Based on Liebig’s law of the minimum and Blackman’s law of limiting factors, this review synthesizes multiple constraints on phytoplankton growth, including nutrients (e.g., nitrogen, phosphorus), trace elements, light, temperature, and ecological interactions such as grazing and macrophyte competition. We evaluate the strengths and limitations of four diagnostic approaches: experimental assays, empirical thresholds, residual analysis, and regression modeling. Three priority research directions are proposed: (1) clarifying the context-specific applicability of nitrogen reduction across lake types; (2) establishing a “climate potential–realized performance” framework for assessing nutrient assimilation efficiency; and (3) investigating how non-classical food web interactions influence bloom dynamics in shallow lakes. This study aims to support the transition from generalized nutrient control toward precision eco-management strategies for algal blooms in Chinese lakes.