We have illuminated a thin-film superconducting Al lumped-element microwave resonator with 780 nm light and observed the resonator quality factor and resonance frequency as a function of illumination and microwave power in the 20 to 300 mK temperature range. The optically induced microwave loss increases with increasing illumination but decreases with increasing microwave power. Although this behavior may suggest the presence of optically activated two-level systems, we find that the loss is better explained by the presence of nonequilibrium quasiparticles generated by the illumination and excited by the microwave drive. We model the system by assuming that the illumination creates an effective source of phonons with energy higher than double the superconducting gap and solve the coupled quasiparticle-phonon rate equations. We fit the simulation results to our measurements and find good agreement with the observed dependence of the resonator quality factor and frequency shift on temperature, microwave power, and optical illumination. Examination of the model reveals approaches to reducing optically induced loss and improving the relaxation time of superconducting quantum devices.