Two-dimensional (2D) transition metal dichalcogenides (TMDCs) and graphene compose a new family of crystalline materials with atomic thicknesses and exotic mechanical, electronic, and optical properties. Due to their inherent exceptional mechanical flexibility and strength, these 2D materials provide an ideal platform for strain engineering, enabling versatile modulation and significant enhancement of their optical properties. For instance, recent theoretical and experimental investigations have demonstrated flexible control over their electronic states via application of external strains, such as uniaxial strain and biaxial strain. Meanwhile, many nondestructive optical measurement methods, typically including absorption, reflectance, photoluminescence, and Raman spectroscopies, can be readily exploited to quantitatively determine strain-engineered optical properties. This review begins with an introduction to the macroscopic theory of crystal elasticity and microscopic effective low-energy Hamiltonians coupled with strain fields, and then summarizes recent advances in strain-induced optical responses of 2D TMDCs and graphene, followed by the strain engineering techniques. It concludes with exciting applications associated with strained 2D materials, discussions on existing open questions, and an outlook on this intriguing emerging field.