Dewatering is critical to oily cold rolling mill (CRM) sludge treatment. Therefore, finding an efficient, energy-saving, and applicable dewatering technology for oily CRM sludge is still urgent. This study investigated the performance of quicklime as a conditioning agent for oily CRM sludge conditioning and dewatering. The interactive effects of quicklime dosage, temperature, and time on filter cake's specific resistance to filtration (SRF) and the dewatering rate of oily CRM sludge were studied by response surface methodology (RSM). The optimal parameters for conditioning oily CRM sludge were quicklime dosage of 18.7%, temperature of 54 °C, and time of 43.3 min, which resulted in filter cake SRF of 0.50 × 1010 m/kg and dewatering rate of 61.2%. The viscosity of oily CRM sludge could be reduced by 90% after conditioned with quicklime, which caused by the neutralization or hydrolysis of high viscosity organic matter in the oil phase with quicklime to produce low viscosity organic matter. The study indicated the excellent performance of quicklime as a conditioning agent for oily CRM sludge treatment and provided an effective route for the recycling of the oily CRM sludge for steel production.