Li-doped ZnO after different thermal treatments was characterized by depth-resolved cathodoluminescence spectroscopy (DRCLS), secondary ion mass spectrometry, surface photovoltage spectroscopy (SPS), coupled with other surface science techniques. It is found that the Li configuration and electrical properties of Li-doped ZnO could be controlled by different thermal processes. Within a 500–600 °C annealing temperature range, subsequent quenching of ZnO leaves Li as interstitial donors, resulting in n-type low room temperature resistivity. In contrast, slower cooling in air enables these interstitials to fill Zn vacancies, forming Li acceptors 3.0 eV below the conduction band edge. Emergence of this acceptor and the resultant resistivity increase agree with the calculated diffusion lengths based on published diffusion coefficients. In general, these acceptors are compensated by residual intrinsic and extrinsic donors, resulting in a semi-insulating material. DRCL spectra exhibit a 3.0 eV optical signature of the LiZn acceptor and its depth distribution in slow-cooled ZnO. A 3.0 eV SPS absorption feature corresponding to a conduction band-to-acceptor level transition confirms this acceptor assignment. Nanoscale SPS spectra reveal p-type band bending localized near ZnO surface nano-mounds, where VZn and LiZn acceptor densities increase. The slow-cooled and quenched Li-doped ZnO spectra display an inverse relationship between the optical emission densities of lithium on zinc versus zinc vacancy sites, demonstrating the time dependence of Li interstitial diffusion to reach zinc vacancies and form substitutional Li acceptors.