Efficient bidirectional microwave optical photon conversion is a key capability for scaling superconducting quantum processors into distributed networks. However, achieving the necessary conversion efficiency requires filling a critical knowledge gap in understanding the loss mechanisms of electro optic materials. Here, we characterize the microwave properties of single crystal bulk LiNbO3 and AlN over a broad range of powers, down to single photon levels, and spanning from millikelvin temperatures to above 1K. We demonstrate that both materials exhibit two level systems (TLS) behavior, while piezoelectric related losses are excluded. We show that TLS induced dissipation is predominantly localized on the surface rather than being an intrinsic bulk property, a result further corroborated by room temperature 3D XPS and time of flight SIMS analyses. These findings provide useful insights to engineer hybrid architectures that integrate bulk electro optic crystals within superconducting cavities, proving that microwave quality factors compatible with high efficiency microwave optical transduction are within reach.