Electrical machines for transportation applications are subjected to harsh environmental conditions during their operations. Partial discharge (PD), which is one of the main reasons for insulation failure, is greatly affected by ambient conditions (i.e., temperature, pressure, and humidity). Countless efforts are made for a comprehensive understanding of the physics of PD under variable environmental factors. This paper aims to review recent works addressing temperature, pressure, and humidity impact on PD activity. The main content of the paper is organized into three sections dealing with each environmental factor. In every section, relevant publications are reviewed considering the type of samples tested, voltage waveform applied, mutual effects, and the most common PD modeling strategies used. The applicability of the PD measurements for PD risk assessment is also discussed. Based on the review, the current progress in understanding the environmental effects on the PD inception mechanism and PD characteristics is presented and discussed in detail, and future research trends in this field are outlined.