Coal ashes in Canada have gained attention as a potential source for recovering rare earth elements (REE) from industrial waste. However, the complex chemical properties of coal ashes have made it difficult to determine the desirability, feasibility, and viability of REE recovery. To address this issue, this study systematically investigated distribution and structural information, speciation and chemical-binding state, and purity and extraction capacity of REE in multiple Canadian coal ashes (i.e., 2 fly ash and 1 bottom ash samples) through synchrotron-based X-ray fluorescence mapping and adsorption spectrum analyses, as well as high-resolution REE sequential extraction quantitation. The results showed that Y, Ce, and La were present in the glass phase of the bottom ash, and the distributions of these REE elements correlated with Ca. The XANES analysis revealed that the dominant form of REE in coal fly ash (CFA) was REE oxides, indicating a transformation during combustion, while Y2O3 and Y2(CO3)3 were the predominant Y species identified in CFA. The study found that there is no correlation between P and REEs, suggesting that REEs in CFA may exist as discrete particles rather than being associated with amorphous glass. The extractability of REEs in bottom ash samples was lower than that in fly ash samples. Additionally, the benefits of REE recovery were estimated to be USD 99.82 to 215.21 per ton of fly ash through life cycle analysis, indicating that REE recovery from fly ashes is a promising path to supplement the REE supply chain in Canada.