A Life Cycle Assessment (LCA) study was carried out to assess the environmental profile of the main Sardinian dairy sheep farming systems, with the scope to provide a detailed and robust baseline for the identification of effective mitigation solutions at farm level and to develop environmental strategies at regional scale. Both product- and area-based functional units (FUs) were adopted, considering sixteen impact categories and soil carbon sequestration estimates as well. Water Use, Climate Change, Land Use, Ecotoxicity Freshwater, Marine Eutrophication and Fossils Resource Use resulted the main impact categories, cumulatively contributing over 80% of the total environmental impact (single score). Environmental performances significantly varied according to the geo-pedological traits of the different sheep milk production areas and were driven by the farming systems’ structure and production level. The group of farms located in less fertile areas showed significantly worse environmental performance per kg of normalized milk for the impact categories Climate Change and Land Use, whereas no significant differences were observed for the remaining main impact categories. Considering the area-based FU, this farm group resulted less impacting for all main categories compared to the group of farms located in more plain and productive soils, with a significantly lower impact observed for Marine Eutrophication and Fossils Resource Use. Regardless of the FU used, feed supply management represented a key area of improvement, and soil carbon sequestration impact compensated the high GHG emission intensity of grassland-based farms despite the limited nutritional value of natural pasture. Regional strategies should be based on ecosystem services optimization and eco-innovative solutions tailored according to both the specific geo-pedological conditions and the production level of each farming system.