This paper is the second in a pair of articles presenting data release 1 (DR1) of the Herschel Astrophysical Terahertz Large Area Survey (H-ATLAS), the largest single open-time key project carried out with the Herschel Space Observatory. The H-ATLAS is a wide-area imaging survey carried out in five photometric bands at 100, 160, 250, 350 and 500µm covering a total area of 600 deg 2 . In this paper we describe the identification of optical counterparts to submillimetre sources in DR1, comprising an area of 161 deg 2 over three equatorial fields of roughly 12 • × 4.5 • centred at 9 h , 12 h and 14.5 h respectively. Of all the H-ATLAS fields, the equatorial regions benefit from the greatest overlap with current multi-wavelength surveys spanning ultraviolet (UV) to mid-infrared regimes, as well as extensive spectroscopic coverage. We use a likelihoodratio technique to identify SDSS counterparts at r < 22.4 for 250-µm-selected sources detected at ≥ 4σ (≈28 mJy). We find 'reliable' counterparts (reliability R ≥ 0.8) for 44,835 sources (39 per cent), with an estimated completeness of 73.0 per cent and contamination rate of 4.7 per cent. Using redshifts and multi-wavelength photometry from GAMA and other public catalogues, we show that H-ATLAS-selected galaxies at z < 0.5 span a wide range of optical colours, total infrared (IR) luminosities, and IR/UV ratios, with no strong disposition towards mid-IR-classified AGN in comparison with optical selection. The data described herein, together with all maps and catalogues described in the companion paper (Valiante et al. 2016), are available from the H-ATLAS website at www.h-atlas.org.