Carbon dots (CDs) have attracted significant attention in the energy, environment, and biology fields due to their exceptional physicochemical properties. However, owing to the multifarious precursors and complex reaction mechanisms, the production of carbon dots from organic molecules is still a mysterious process. Inspired by the color change of sodium hydroxide ethanol solution after standing for some time, in this work, we thoroughly investigated the reaction mechanism from alcohol molecules to carbon dots through a lot of experiments and theoretical calculations, and it was found that the rate-controlling reaction is the formation of aldehydes, and it is also confirmed that there is a self-catalysis reaction, which can accelerate the conversion from alcohol to aldehyde, further facilitating the final formation of CDs. After the rate-controlling reaction of alcohol to aldehyde, under strongly alkaline conditions, an aldol reaction occurs to form unsaturated aldehydes, followed by further condensation and polymerization reactions to form long carbon chains, which are cross-linked and dehydrated to form carbon dots with a carbon core and surface functional groups. Additionally, it is found that the reaction can be largely accelerated with the assistance of electricity, which indicates the great prospect of industrial production. Furthermore, the obtained CDs with rich functional groups can be utilized as electrolyte additives to optimize the deposition behavior of Na metal, manifesting great potential towards safe and stable Na metal batteries.