Yeast are comprised of diverse single-cell fungal species including budding yeast Saccharomyces cerevisiae and various nonconventional yeasts. Budding yeast is well known as an important industrial microorganism, which has been widely applied in various fields, such as biopharmaceutical and health industry, food, light industry and biofuels production. In the recent years, various yeast strains from different ecological environments have been isolated and characterized. Novel species have been continuously identified, and strains with diverse physiological characteristics such as stress resistance and production of bioactive compounds were selected, which proved abundant biodiversity of natural yeast resources. Genome mining of yeast strains, as well as multi-omics analyses (transcriptome, proteome and metabolome, etc.) can reveal diverse genetic diversity for strain engineering. The genetic resources including genes encoding various enzymes and regulatory proteins, promoters, and other elements, can be employed for development of robust strains. In addition to exploration of yeast natural diversity, phenotypes that are more suitable for industrial applications can be obtained by generation of a variety of genetic diversity through mutagenesis, laboratory adaptation, metabolic engineering, and synthetic biology design. The optimized genetic elements can be used to efficiently improve strain performance. Exploration of yeast biodiversity and genetic diversity can be employed to build efficient cell factories and produce biological enzymes, vaccines, various natural products as well as other valuable products. In this review, progress on yeast diversity is summarized, and the future prospects on efficient development and utilization of yeast biodiversity are proposed. The methods and schemes described in this review also provide a reference for exploration of diversity of other industrial microorganisms and development of efficient strains.