The divergent effects of straw returns on nitrous oxide (N2O) emissions from soil require elucidation of the underlying mechanisms and factors that explain the inconsistency in in-situ conditions. We conducted a field experiment based on a long-term trial under different regimes of nitrogen (N) fertilization and straw management, complemented by laboratory incubation experiments involving visualized O2 dynamics imaging. In the field trial, we performed hourly basis high-time-resolution measurements of soil matrix oxygen (O2), N2O concentrations and fluxes during N2O “hot moment” events. We found that straw return increased cumulative N2O emissions by 32.7% under conventional high N input (Ncon), but showed no effect on N2O emission under optimized N input (Nopt). In situ O2 content and further microcosm experiments with visualized O2 spatiotemporal distribution suggested that long-term straw return increases porosity and soil O2 content, which reduced N2O emission under low N substrate conditions by improving soil pore structure and aeration during “hot moment” events. By contrast, straw return increased N2O emission via creating short-term O2 depletion zone and triggering denitrification in anoxic microsites when excess N substrate was available. Although straw return showed inconsistent effects on N2O emission under different N application rates, it consistently decreased N2O concentration in the soil matrix during the "hot moment" events, suggesting that straw return increases the transport of the produced N2O in soil matrix to the soil surface. Our study underscores the multifaceted role of straw return in soil O2 dynamics, i.e., stimulating O2 consumption in a short-term microscale of soil, but increasing soil porosity in a long-term mesoscale of soil. This explains the confounding effects of straw management on the production and transportation of soil N2O in situ and emphasizes the importance of optimized N fertilization for reducing the “hot moment” N2O emissions when straw is incorporated.