Sperm cryopreservation is a well-established strategy for preserving genetic resources and supporting livestock breeding programs. However, the freeze–thaw process induces oxidative stress through excessive production of reactive oxygen species (ROS), leading to lipid peroxidation, disruption of membrane integrity, and DNA damage, which ultimately reduces sperm quality and fertility potential. Therefore, the application of antioxidant compounds has gained considerable attention as a promising approach to mitigate cryodamage. Quercetin, a natural flavonoid with strong antioxidant capacity, has shown potential for scavenging ROS and enhancing antioxidant defense systems, thereby contributing to the preservation of sperm structure and function. Despite these biological advantages, the practical application of free quercetin is limited due to poor solubility, low stability, and reduced bioavailability. Recent advances in nanodelivery systems, particularly nanoliposomes, offer a promising approach by improving compound stability, enabling controlled release, and enhancing interactions with the sperm membrane. The utilization of novel drug delivery systems, particularly nanoliposomes, possesses the potential to improve stability, provide controlled release, and enhance interaction with the sperm membrane, although its precise biological efficacy across various livestock species remains to be fully elucidated. Focusing on laboratory and experimental studies, this analytical review evaluates the role of free quercetin alongside the preliminary evidence of its encapsulated counterpart on the quality indices of frozen livestock semen. The reviewed findings indicate that while the targeted application of nanolipid systems could emerge as a promising strategy, its definitive generalization requires broader field trials due to the severe limitation of experimental evidence in the livestock sector.