GCS, or geological carbon storage, is a viable method of underground carbon dioxide in places like deep porous saline rocks. To stop large amounts of CO2 from being released into the atmosphere from the consumption of different resources, like fossil fuels used in power generation and many other industrial and manufacturing processes (e.g., petrochemicals, refining, steel, glass, and cement plants), it is imperative to capture, reuse, and eventually store (sequester) CO2. Efficiently capturing, transporting, and finally injecting CO2 into underground geological formations is one of the most promising methods. This could allow for the safe long-term storage of CO2 because geological barriers limit the gas’s long-term seepage back into the atmosphere. The CO2-brine-rock interaction in saline aquifers usually results in the dissolution of CO2 into the brine and forming carbonic acids. This interaction may result in the breakdown of minerals and pore space obstruction, drastically lowering permeability. Moreover, the performance of the injection may be impacted by CO2 injection, causing formation damage. Using a pressure transient analysis approach, the paper constitutes an essential examination of the impacts of CO2 injection on formation damage. The interpretation makes it possible to evaluate the detrimental effect on the efficiency of CO2 storage and the optimization of CO2 injection. In addition to supporting explainable deep learning-driven decision-making for evaluating CO2-driven formation damage, the physics-driven wavelet-based denoising deep learning study offers crucial insights into optimizing CO2 injection.