Recently, there has been an increase in the number of reports on textile-based dry electrodes that can detect biopotentials without the need for electrolytic gels. However, these textile electrodes have a higher electrode skin interface impedance due to the improper contact between the skin and the electrode, diminishing the reliability and repeatability of the sensor. To facilitate improved skin–electrode contact, the effects of load and holding contact pressure were monitored for an embroidered textile electrode composed of multifilament hybrid thread for its application as a surface electromyography (sEMG) sensor. The effect of the textile’s inter-electrode distance and double layering of embroidery that increases the density of the conductive threads were studied. Electrodes embroidered onto an elastic strap were wrapped around the forearm with a hook and loop fastener and tested for their performance. Time domain features such as the Root Mean Square (RMS), Average Rectified Value (ARV), and Signal to Noise Ratio (SNR) were quantitatively monitored in relation to the contact pressure and load. Experiments were performed in triplicates, and the sEMG signal characteristics were observed for various loads (0, 2, 4, and 6 kg) and holding contact pressures (5, 10, and 20 mmHg). sEMG signals recorded with textile electrodes were comparable in amplitude to those recorded using typical Ag/AgCl electrodes (28.45 dB recorded), while the signal-to-noise ratios were, 11.77, 19.60, 19.91, and 20.93 dB for the different loads, and 21.33, 23.34, and 17.45 dB for different holding pressures. The signal quality increased as the elastic strap was tightened further, but a pressure higher than 20 mmHg is not recommended because of the discomfort experienced by the subjects during data collection.