In the present study, we pyrolyzed a waste tire at various temperatures under an N2 atmosphere and a water environment in an autoclave reactor to investigate the effect of water on tire degradation. The analysis involved a comparison of product distribution, char properties, oil composition, and the behavior of heteroatom elements (especially oxygen, nitrogen, and sulfur) under different atmospheres. Elemental analysis, functional-group identification, and chemical state analysis of sulfur were performed for chars. In addition, the chemical composition, elemental composition, and molecular weight of the produced oils were evaluated. The heavy fraction of oils, not detectable by gas chromatography-mass spectrometry (GC-MS), was analyzed through Fourier-transform ion cyclotron resonance mass spectrometry (FT-ICR MS). The findings revealed that high temperatures promoted oil cracking, resulting in the formation of light oils in both pyrolysis and hydrolysis processes. Compared to pyrolysis, hydrolysis generated a higher yield of low molecular–weight oil. Elevated hydrolysis temperatures promoted aromatization, yielding an oil with a low H/C ratio and a high double bond equivalent number. Consequently, the concentration of aromatics in the light fraction of oils generated from the hydrolysis process exceeded that in oils from the pyrolysis process. Temperature exhibited a limited impact on oil composition during the pyrolysis process. Hydrolysis promoted the release of heteroatom-containing compounds at low temperatures. During pyrolysis, nitrogen was gradually released from the solid phase, whereas nitrogen-containing compounds were released early during hydrolysis, with gas-phase nitrogen accounting for more than 50 wt% at 320 °C. A maximum D-limonene yield of 45.58% was obtained at 360 °C within 0 min of hydrolysis, with the potential conversion of D-limonene into aromatics at higher hydrolysis temperatures. These results contribute to the understanding of tire valorization via hydrolysis.