This study aims to optimize the variables involved in the wool dyeing process with cochineal (Dactylopius coccus Costa) to achieve the Mexican red hue, providing a scientific guide in the production of cochineal-dyed textiles. Sequential experimental designs and the steepest ascent method were employed to evaluate key factors, including insect quantity, mordant quantity, toner quantity, dyeing temperature, dyeing time, mordanting method, and dye pot material, by using color strength (K/S) maximum (at 530 nm) as a response variable. Colorimetric measurements were made in the CIELab color space for shade confirmation. The results highlighted the importance of pre-mordanting (using alum) and identified insect and toner quantities as the most significant variables. An optimal plateau was identified within the range of (45–55)% on weight of fabric (owf) for insect quantity and (20–25)% owf for toner (cream of tartar) quantity. Wash fastness tests demonstrated good to very good performance, with grayscale ratings of 3–4, and minimal to no staining on adjacent fabrics.