In this study, water retention tests under free swelling conditions were performed to investigate the water intake (or loss) behaviour of compacted GMZ bentonite. First, the water retention characteristics were investigated, and then the microscopic pore structure was observed by environmental scanning electron microscope (ESEM). The results indicate that GMZ bentonite has a strong swelling (or a limited shrinkage ability) due to water intake (loss). The suction behaviour of GMZ bentonite is similar to MX80 bentonite and FEBEX bentonite. We also find that the confinement conditions can affect the suction behaviour of the material, especially at high relative humidity (RH). Additionally, a mathematic model can fit the mass change data very well. Microscopic tests show that the granular sensation of GMZ bentonite is obvious for a sample at low RH. With the increase in RH, the surface of GMZ bentonite becomes more smooth. The differences in the porosities calculated by the macroscopic and microscopic tests can be attributed to image resolution. The inter-laminar pores and intra-aggregate pores cannot be observed by the ESEM method. In addition, ESEM observation can provide an intuitive basis for the further research of the seepage property of GMZ bentonite.