In this paper, we investigate periodically driven open quantum systems within the framework of Floquet-Lindblad master equations. Specifically, we discuss Lindblad master equations in the presence of a coherent, time-periodic driving and establish their general spectral features. We also clarify the notions of transient and nondecaying solutions from this spectral perspective, and then prove that any physical system described by a Floquet-Lindblad equation must have at least one physical nonequilibrium steady state (NESS), corresponding to an eigenoperator of the Floquet-Lindblad evolution superoperator ${\mathcal{U}}_{F}$ with unit eigenvalue. Since the Floquet-Lindblad formalism encapsulates the entire information regarding the NESS, it in principle enables us to obtain nonlinear effects to all orders at once. The Floquet-Lindblad formalism thus provides a powerful tool for studying driven-dissipative solid-state systems, which we illustrate by deriving the nonlinear optical response of a simple two-band model of an insulating solid and comparing it with prior results established through Keldysh techniques.