Preheat oven to 400 degrees. Line a large baking sheet with parchment paper or foil.
Cut off the stem of each pepper, slice in half lengthwise and remove seeds. Arrange pepper halves on prepared baking sheet; set aside.
Heat olive oil in a large skillet, over medium-high heat. Add ground turkey, cook, stirring until brown and cooked through. Add water and taco seasoning; cook, stirring until combined and water has evaporated.
Spoon taco meat into mini pepper halves. Combine Monterey Jack and cheddar cheeses; sprinkle over taco meat. Bake until cheese is bubbly, about 8-10 minutes.
Remove from the oven and top with chopped black olives, Pico de Gallo, cilantro, and pickled jalapeños.
Drizzle with sour cream or ranch dressing. Serve immediately with lime wedges.