The metal halide perovskite nanocrystal (MHP-NC), an easy-to-fabricate and low cost fluorescent material, is recognized to be among the promising candidates of the color conversion material in the micro light-emitting diode (micro-LED) display, providing that the stability can be further enhanced. It is found that the water steam, oxygen, thermal radiation and light irradiation—four typical external factors in the ambient environment related to micro-LED display—can gradually alter and destroy the crystal lattice. Despite the similar phenomena of photoluminescence quenching, the respective encroaching processes related to these four factors are found to be different from one another. The encroaching mechanisms are collected and introduced in separate categories with respect to each external factor. Thereafter, a combined effect of these four factors in an environment mimicking real working conditions of micro-LED display are also introduced. Finally, recent progress on the full-color application of MHP-NC is also reviewed in brief.