The logging results from the Shenhu Sea show that the P-T conditions of NGH deposits are below the CO2 hydrate phase equilibrium curve. The burial depth difference between the CO2 hydrate stable zone and NGH deposits is usually above 100 m, which differs from the laboratory scale. Thus, whether CO2 hydrate caps can provide pore sealing and reinforcement of natural gas hydrate (NGH) overburden at the engineering scale is unknown. Based on this, we aimed to perfect research on the CO2 hydrate cap, including its formation process, effects on NGH exploitation, geomechanical response, and comprehensive benefit evaluation, by establishing a THMC model based on Site W17. Results indicate that (i) CO2 can form hydrates in the overburden layer with a conversion rate of about 28%, preventing the upward escape of residual liquid CO2 due to density difference. (ii) CO2 injection and CO2 hydrate cap formation can increase the decomposition driving force during depressurization to enhance production, but it fails to inhibit water invasion from the upper part of the NGH deposit due to the excessive depth difference. (iii) The CO2 hydrate cap causes strata uplift, thereby mitigating strata subsidence during depressurization production, especially for the cases of horizontal wells, where the subsidence is reduced by about 103.4%. (iv) Injecting too much CO2 may not benefit gas production, where part of the free gas will convert into NGH due to pressure rise. The optimal injection rate in this study is 40,000 m3/d. (v) Indicators like CO2 hydrate conversion rate, gas-water ratio, and maximum strata displacement show that horizontal well systems with CO2 hydrate caps are more beneficial than vertical well systems, and multi-branched well systems are more beneficial than single-direction well systems. These key findings may differ from the laboratory scale, which can provide a reference for applying CO2 hydrate caps in actual NGH exploitation.