Hepatocarcinogenesis is a multi-step process in which detection of precancerous lesions and advanced hepatocellular carcinoma in its progressive stage is crucially important for predicting tumor behavior, estimating the extent of lesions, implementing the optimal treatment strategy, and improving the survival of patients. The rapid development and wide application of liver imaging technology, especially the application of hepatocyte-specific gadoxetate disodium MRI contrast agent (Gd-EOB-DTPA MRI), not only provide information on vascular changes of liver nodules and hepatocyte function, but also has become a precise diagnostic method for differentiating cirrhotic regenerative nodule (RN), low-grade dysplastic nodule (LGDN), high-grade dysplastic nodule (HGDN), early hepatocellular carcinoma and HCC. Hence, the risk for malignant progression is stratified. This review summarizes the value of Gd-EOB-DTPA MRI for early HCC diagnosis and analyzes the key concepts in the multi-step process of HCC development as well as the imaging manifestations of precancerous lesions that may eventually be transformed into typical HCC.