Lithium niobate has become an essential fundamental material for constructing next-generation integrated optoelectronic devices and optical systems because of its excellent optical properties. The technique for strong field-material interaction-based ultrafast-laser-selective material modification enables the on-demand construction of functionalized lithium niobate micro-nanostructures in three-dimensional space, providing a powerful tool for the development of lithium niobate photonics, advanced processing techniques, and integrated photonic devices and optical systems. In this review, we focused on the recent milestone progress achieved by research teams worldwide. Starting from the fundamental principles of ultrafast laser modification in lithium niobate, we introduced new phenomena, mechanisms, and applications of ultrafast-laser-induced micro-nanophotonic structures inside lithium niobate crystals, including ultrafast laser direct writing of optical waveguides, nonlinear photonic crystal preparation, ferroelectric domain manipulation, and multidimensional data storage. Finally, we presented a perspective on the prospects of ultrafast-laser-empowered lithium niobate photonics.