Electrochemical batteries play a crucial role for powering portable electronics, electric vehicles, large-scale electric grids, and future electric aircraft. However, key performance metrics such as energy density, charging speed, lifespan, and safety raise significant consumer concerns. Enhancing battery performance hinges on a deep understanding of their operational and degradation mechanisms, from material composition and electrode structure to large-scale pack integration, necessitating advanced characterization methods. These methods not only enable improved battery performance but also facilitate early detection of substandard or potentially hazardous batteries before they cause serious incidents. This review comprehensively examines the operational principles, applications, challenges, and prospects of cutting-edge characterization techniques for commercial batteries, with a specific focus on in situ and operando methodologies. Furthermore, it explores how these powerful tools have elucidated the operational and degradation mechanisms of commercial batteries. By bridging the gap between advanced characterization techniques and commercial battery technologies, this review aims to guide the design of more sophisticated experiments and models for studying battery degradation and enhancement.