It is widely recognized that anoxic conditions facilitate the preservation of organic carbon in marine sediments. However, the specific geological factors that lead to the development of such conditions in paleo-lakes are less well understood. Owing to their smaller size, paleolakes could experience more frequent and stronger changes in geochemical conditions than oceans. Such changes, such as volcanism, hydrothermal fluids, or ocean transgressions, can also strongly affect the lacustrine organic carbon burial thereby complicating sediment diagenesis record. Here, we used total organic carbon content (TOC), organic carbon isotope (δ13Corg), iron speciation, and pyrite sulfur isotope (δ34Spy) data to establish relationships between organic carbon preservation and anoxic conditions in fine-grained sediments from the middle Eocene lacustrine depositional environments from the Shahejie Formation of the Jiyang Depression, Bohai Bay Basin, eastern China. The results reveal TOC between 1 % and 10 %, highly-reactive iron to total iron ratios >0.38, and most TOC to total sulfur ratios exceeding 2. These data indicate that the organic-rich shales of the Shahejie Formation were formed as a result of high primary productivity during the warm and humid middle Eocene period, coupled with the efficient preservation of organic matter in anoxic bottom waters. Negative δ13Corg and δ34Spy excursions recorded in the Shahejie Formation indicate water column conditions to have been influenced by transient volcanic eruptions. Positive δ13Corg and negative δ34Spy excursions may have been caused by hydrothermal fluids input whereas δ34Spy values approaching 20 ‰ suggest frequent marine transgressions. In particular, despite potential inputs of S into the paleolake by volcanism, hydrothermal fluids, or marine transgressions, bacterial sulfate reduction efficiently depleted the sulfate pool to have created ferruginous geochemistry water conditions for the effective preservation of organic carbon in sediments. Our results establish a direct link between lacustrine shale geochemical signatures and geological phenomena that impact its sedimentation.