Knowledge of the microscopic behavior of CO₂ hydrates in oceanic sediments is crucial to evaluate the efficiency and stability of hydrate-based CO₂ sequestration in oceans. Here, systematic molecular dynamics simulations are executed to investigate the growth and dissociation of CO₂ hydrates, and the mechanical instability of CO₂ hydrate-Illite interface in the brine-urea-Illite system. Simulation results show that the CO₂ hydrate growth is jointly affected by the confined space, Illite surface properties, and presence of urea. Specifically, the interfacial H₂O and the ion layer on the Illite surface hinder the growth of CO₂ hydrate crystals toward Illite surfaces. Urea molecules can bind salt ions and increase CO₂ concentrations in the water, thus kinetically promoting CO₂ hydrate growth. The dissociation of the CO₂ hydrate is affected by Illite surface properties and the CO₂ hydrate structure. CO₂ hydrate starts from the regions where hydrate particles are minimally in contact and extends on both sides. The mechanical tension and compression of the CO₂ hydrate-Illite interface exhibit nonlinear characteristics by changing the hydrogen bonds and the CO₂ hydrate structure. The molecular insight into the microscopic behavior of CO₂ hydrates in the brine-urea-Illite system contributes to a broader understanding of hydrate-based CO₂ sequestration.