The conversion of lignite into aromatic compounds by highly active catalysts is a key strategy for lignite valorization. In this study, Ni/NiO@NC nanocomposites with a high specific surface area and a vesicular structure were successfully prepared via a facile sol-gel method. The Ni/NiO@NC catalysts exhibited excellent catalytic activity for the catalytic hydroconversion (CHC) of benzyloxybenzene (as lignite-related modeling compounds) under mild conditions (120 °C, 1.5 MPa H, 60 min). The possible mechanism of the catalytic reaction was investigated by analyzing the type and content of CHC reaction products at different temperatures, pressures, and times. More importantly, the magnetic catalyst could be conveniently separated by a magnet after the reaction, and it maintained high catalytic efficiency after six reuses. This study provides an efficient and recyclable catalyst for the cleavage of >CH-O bonds in lignite, thereby offering another way for improved utilization of lignite.