The effect of the nature of the acido ligand in the precursor and the modifying action of elemental phosphorus on palladium catalysts for hydrogenation are reported. The large turnover frequency (TOF) and turnover number (TON) values observed for styrene hydrogenation on the Pd blacks prepared in situ by PdCl2 reduction with hydrogen in DMF are due to the formation of fine-particle catalyst with a base particle size of 6–10 nm. This is explained by the high PdCl2 reduction rate and by the formation of a palladium cluster stabilizer—dimethylammonium chloride—in the reaction system via the catalytic hydrolysis of the solvent (DMF). The modifying action of elemental phosphorus on the properties of the palladium catalysts depends on the nature of the acido ligand in the precursor. In the case of oxygen-containing precursors at small P/Pd ratios, elemental phosphorus exerts a promoting effect, raising the TON and TOF values by a factor of about 9. In the case of palladium dichloride as the precursor, white phosphorus exerts an inhibiting effect. At the same time, it enhances the stability of the catalyst, raising the TON value at P/Pd = 0.3. The causes of these distinctions are considered.