In this review, we summarize the latest advances in the design of optical frequency-domain reflectometers (OFDRs), digital signal processing, and sensors based on special optical fibers. We discuss state-of-the-art approaches to improving metrological characteristics, such as spatial resolution, SNR, dynamic range, and the accuracy of determining back reflection coefficients. We also analyze the latest achievements in the OFDR-based sensors: the accuracy of spatial localization of the impact, the error in detecting temperatures, deformation, and other quantities, and the features of separate measurement of various physical quantities. We also pay attention to the trend of mutual integration of frequency-domain optical reflectometry methods with time-domain optical reflectometry, which provides completely new sensing possibilities. We believe that this review may be useful to engineers and scientists focused on developing a lab setup, complete measurement instrument, or sensing system with specific requirements.