Nitric oxide (NO) has been identified as a key physiological modulator and signaling molecule in animals and plants. However, due to its high reactivity, our knowledge of its production and consumption pathways in the ocean remain limited. Laboratory experiments showed that Ulva prolifera can produce NO, producing as much as 0.44 ± 0.04 nmol h g. During the growth period, U. prolifera released NO, but during the decay period NO was absorbed by U. prolifera and bacteria. Furthermore, field investigations examined NO concentrations in the coastal waters of the Yellow Sea off Qingdao, where the U. prolifera green tide occurred in summer 2018. The average concentrations of NO in the surface seawater were 70.2 ± 38.2 pmol L and 18.9 ± 10.3 pmol L in the late- and after-bloom periods, respectively. NO release by U. prolifera was the primary contributor to the high NO concentrations during the late-bloom period. The study area was a net source of NO to the atmosphere during the study period, with average NO sea-air fluxes from the Qingdao coastal waters being 1.5 × 10 mol m s and 0.4 × 10 mol m s in the late- and after-bloom periods, respectively. This study concluded that the coastal waters of the Yellow Sea off Qingdao contributed more NO to the atmosphere during the bloom of U. prolifera than afterward.