In the present research, the effects of UV-B radiation (5.00 kJ·m−2) on the chemical composition of Azolla were investigated, and the decomposition of Azolla residues after UV-B radiation, the nitrogen form, enzyme activity, and bacterial community in paddy soil were analyzed. Compared to the natural light treatment, the total nitrogen content of Azolla was significantly increased by 17.0% under UV-B radiation treatment. Compared to returned Azolla grown under natural light, the decomposition rate of cellulose, lignin, and total nitrogen of returned Azolla grown under UV-B radiation significantly increased, which led to an increase in the activities of nitrogen transformation enzymes, including neutral protease, ammonia monooxygenase, nitrogenase, nitrate reductase, and nitrite reductase, and the contents of different nitrogen forms (NH4+-N, NO3−-N, soluble organic nitrogen, and microbial biomass nitrogen) in paddy soil, while N2O emission flux was significantly reduced by 20–30%. The dominant bacteria in soil supplied with Azolla grown under natural light were Firmicutes, Clostridia, Clostridiales, and Lachnospiraceae. However, returning Azolla grown under UV-B radiation to the soil significantly changed the bacterial community structure in soil, resulting in a decrease in the number of ammonifying bacteria, nitrifying bacteria, and nitrogen-fixing bacteria and an increase in the number of denitrifying bacteria, inducing changes in the dominant bacteria to Methanomicrobiales, Methanoregulaceae, and Methanoregula. According to the structural equation model, returning Azolla to the field would reduce N2O emissions by increasing Azolla lignin decomposition and ammonia monooxygenase activity, reducing the number of nitrifying bacteria and reducing nitrite reductase activity in soil. Thus, UV-B radiation can directly change the phytochemical components and their decomposition in soil, thus indirectly affecting the bacterial community structure, enzyme activity, and nitrogen transformation, which play important ecological roles in regulating the nutrient transformation of terrestrial ecosystems.