In recent years, with the rapid development of clean energy vehicles (i.e., electric vehicles and hybrid electric vehicles) and electrochemical energy storage stations, safety accidents have significantly increased. However, the abuse conditions such as overheating, overcharging, mechanical abuse, short circuits, etc., can result in thermal runaway of lithium-ion batteries (LIBs). Severe thermal runaway can lead to battery fire and even explosion, thereby threatening the safety of personnel. The application of a few aerogels to the thermal insulation layer between the cells of the lithium-ion battery modules can strengthen the safety of batteries. Among many aerogels, oxide aerogels show excellent insulation and high-temperature resistance. Therefore, aerogels, especially oxide aerogels, have aroused widespread research interest. This paper introduces the mechanism of thermal runaway of LIBs and systematically reviews several important oxide aerogels and the derived composites, especially those based on SiO2, Al2O3, and ZrO2 aerogels. The mechanical strength and high-temperature resistance of those aerogels are discussed. The application of aerogel in LIBs is also investigated in detail, and the all-around effect is caused by the introduction of aerogel materials. In addition, the thermal protection safety strategy of aerogel thermal insulation layers is proposed. It is supposed that this review could enable readers to deepen their understanding of this field.