Sediment gravity flow deposits are common, particularly in sandy formations, but their origin has been a matter of debate and there is no consensus about the classification of such deposits. However, sediment gravity flow sandstones are economically important and have the potential to meet a growing demand in oil and gas exploration, so there is a drive to better understand them. This study focuses on sediment gravity flow deposits identified from well cores in Palaeogene deposits from the Liaodong Bay Depression in Bohai Bay Basin, China. We classify the sediment gravity flow deposits into eight lithofacies using lithological characteristics, grain size, and sedimentary structures, and interpret the associated depositional processes. Based on the scale, spatial distribution, and contact relationships of sediment gravity flow deposits, we defined six types of lithofacies associations (LAs) that reflect transformation processes and depositional morphology: LA1 (unconfined proximal breccia deposits), LA2 (confined channel deposits), LA3 (braided-channel lobe deposits), LA4 (unconfined lobe deposits), LA5 (distal sheet deposits), and LA6 (non-channelized sheet deposits). Finally, we established three depositional models that reflect the sedimentological characteristics and depositional processes of sediment gravity flow deposits: (1) slope-apron gravel-rich depositional model, which involves cohesive debris flows deposited as LA1 and dilute turbidity currents deposited as LA5; (2) non-channelized surge-like turbidity current depositional model, which mainly comprises sandy slumping, suspended load dominated turbidity currents, and dilute turbidity currents deposited as LA5 and LA6; and (3) channelized subaqueous-fan depositional model, which consists of non-cohesive bedload dominated turbidity currents, suspended load dominated turbidity currents, and dilute turbidity currents deposited as LA2–LA5, originating from sustained extrabasinal turbidity currents (hyperpycnal flow). The depositional models may be applicable to oil and gas exploration and production from sediment gravity flow systems in similar lacustrine depositional environments elsewhere.