With the increasing consumer demand and only 31% of the self-sufficiency rate, how to mitigate the supply safety of edible vegetable oil in an environmentally sustainable manner is a tremendous challenge for China. This study comprehensively qualified the potential environmental impact from the major edible vegetable oil production (i.e., soybean oil, rapeseed oil, and peanut oil) in China through the life cycle assessment method. Results show that rapeseed oil and peanut oil are environmentally friendly. More than 20% of environmental contamination could be avoided in 2025 by replacing the further increase in soybean oil production with a mix of the other products. The key contribution analysis indicates that the agricultural phase is a significant source of environmental pollution due to excessive fertilizer production and irrigation water consumption. During the oil processing phases of soybean oil and peanut oil, steam production also contributed to considerable environmental impact. Therefore, applying new fertilizers, developing water-saving irrigation technologies, and optimizing the steam heat exchange net are suggested. Moreover, increasing the oil extraction rate through electrotechnical technology has great potential in reducing the environmental damage caused by oil-bearing crop planting. Based on the spatial discrepancy in the agricultural phase, advantageous planting regions (e.g., Anhui, Henan, Shandong, and Jiangsu) are references for the further planting structure adjustment. Meanwhile, advocating scientific diets and optimizing the industry layout are recommended to ensure the healthy and sustainable development of China's edible vegetable oil industry.