To improve nitrogen use efficiency (NUE) during rice cultivation, it is essential to comprehend the morphological and physiological traits of rice roots. However, in high-fertility black soil regions of Northeast China, the effects of combining biochar application with water-saving irrigation (WSI) conditions on rice root development and nitrogen utilization are still unknown. To address this knowledge gap, a combination of field experiments and 15N tracer micro-area investigations was conducted in this study. Four treatments were implemented: (i) controlled irrigation without biochar application (CB0); (ii) controlled irrigation with 2.5 t ha−1 biochar application (CB1); (iii) controlled irrigation with 12.5 t ha−1 biochar application (CB2); and (iv) controlled irrigation with 25 t ha–1 biochar application (CB3). Flooded irrigation conditions without biochar treatment (FB0) were used as the control. The primary objective of this research was to identify the mechanisms by which combined WSI conditions and biochar application affect rice root development and nitrogen utilization. Biochar application enhanced rice root morphological and physiological characteristics. Optimal biochar application increased the longest root length (RL), root volume (RV), root fresh weight (RFW), root active absorption area, root bleeding intensity, and root activity (RA) of rice while also optimizing the root–shoot ratio and facilitating nitrogen absorption by roots. These changes in root morphological and physiological characteristics facilitated the absorption of fertilizer-15N and soil nitrogen by rice roots, ultimately leading to improvements in rice yields and NUEs. Notably, the rice yields, NUE, nitrogen agronomic efficiency (NAE), and nitrogen partial factor productivity (NPFP) of CB2 plants were 16.45%, 39.42%, 24.48%, and 16.45% higher than those of FB0 plants, respectively. These results highlight the effectiveness of biochar application as a strategy to ensure food security and enhance NUE under WSI conditions. Furthermore, this study suggests that the recommended optimal application amount of biochar for the black soil area of Northeast China is 12.5 t ha−1.