Recent developments have indicated a potential association between tinnitus and COVID-19. The study aimed to understand tinnitus following COVID-19 by examining its severity, recovery prospects, and connection to other lasting COVID-19 effects. Involving 1331 former COVID-19 patients, the online survey assessed tinnitus severity, cognitive issues, and medical background. Of the participants, 27.9% reported tinnitus after infection. Findings showed that as tinnitus severity increased, the chances of natural recovery fell, with more individuals experiencing ongoing symptoms (p < 0.001). Those with the Grade II mild tinnitus (OR = 3.68; CI = 1.89–7.32; p = 0.002), Grade III tinnitus (OR = 3.70; CI = 1.94–7.22; p < 0.001), Grade IV (OR = 6.83; CI = 3.73–12.91; p < 0.001), and a history of tinnitus (OR = 1.96; CI = 1.08–3.64; p = 0.03) had poorer recovery outcomes. Grade IV cases were most common (33.2%), and severe tinnitus was strongly associated with the risk of developing long-term hearing loss, anxiety, and emotional disorders (p < 0.001). The study concludes that severe post-COVID tinnitus correlates with a worse prognosis and potential hearing loss, suggesting the need for attentive treatment and management of severe cases.