Histone demethylases (HDMs) are vital players in epigenetic regulation and important targets in cancer treatment, but effective molecular tools for analyzing HDMs activity are still limited. Interestingly, we found that the process of Ag+-triggered oxidation of O-phenylenediamine (OPD) to 2,3-diaminophenazine (OPDox) could be efficiently inhibited by formaldehyde (HCHO), with the decrease of fluorescent and colorimetric signals from OPDox. Accordingly, we developed a novel label-free fluorescent and colorimetric dual-readout assay for HDMs activity based on direct quantitation of HCHO liberated in the demethylation process. On the basis of the excellent performance of the Ag+-OPD-based method for HCHO quantitation, lysine-specific demethylase 1(LSD1) activity was not only successfully detected with a low detection limit of 0.3 nM (fluorescence) and 0.5 nM (colorimetric) but also observed by the naked eye. Moreover, the feasibility of the proposed assay was further expanded to assess the LSD1 activity in cancer cell lysate and its inhibition through a mix-and-readout procedure. This label-free, cost-effective, and highly sensitive dual-readout assay presents a valuable tool for epigenetics research and drug discovery.