Shocking, I know, but there's actually not a lot out there for this game in specific. But, I found some more detailed info from the Gameboy game which was also dev'd by Hot-B and seems to line up with what little info the NES manual offers, so hopefully it's accurate (enough) here too:

https://gamefaqs.gamespot.com/gameboy/581674-black-bass-lure-fishing/faqs/63610

-----------
Lure Colors
-----------
        Along with choosing the type of lure to use when going fishing, you may
also choose between lure 'color', with red, blue and silver the available
options. The following are the optimal conditions for each color type.

        Red
        ---
        Rainy/Cloudy Days
        Very Shallow or Deep Waters
        Early Morning or Late Afternoon


        Blue
        ----
        Clear or Cloudy Days
        Middle Depths
        1:00pm - 3:00pm

        Silver
        ------
        Clear Days
        Shallow to Middle Depths
        Early Morning or Late Afternoon

Ultimately I'm not entirely sure color /actually/ matters in the NES version.

The manual suggests that the bass tend for deeper waters midday. For the first lake this doesn't matter but has anyone experimented with deeper lures in the other three lakes?

Spinner and Worm are the "sink" lures that are used for deeper fishing. Manual instructs "during the daytime" ie: Not morning or evening to use Sink Lures.

Popper, Frog, and Pencil are all float lures for morning/evening use.

All of the lures work well with the "Left, Right, Up/A, repeat" movement method. (According to the manual again). Worm can "dance" at depth with Up/A.