Vertical position changes of ground-based Global Navigation Satellite System (GNSS) stations have been used to study regional terrestrial water storage (TWS) changes. However, the feasibility is still unclear in many areas due to diverse local effects. This study aims to evaluate the capability of GNSS vertical displacements in monitoring hydrological variations in four climate settings over Chinese mainland. The spatial and temporal variations of hydrological load-induced (HYDL) vertical displacements at 208 GNSS sites during 2011–2020 were analyzed by comparing with Gravity Recovery and Climate Experiment (GRACE)/GRACE Follow-On (GFO) and Global Land Data Assimilation System (GLDAS) derived TWS changes. The results show that GNSS vertical positions show different capabilities in capturing seasonal and non-seasonal hydrological dynamics in different climate regions. Among the four climatic settings, the subtropical monsoon climate (SMC) region, with the largest deformation fluctuation (the regional mean root mean square (RMS) is 7.97 mm), has the highest regional mean HYDL-GRACE and HYDL-GLDAS anti-correlation coefficients (CCs) of −0.47 and −0.45 at the seasonal scale, respectively. For the individual GNSS site, the number of the sites with CC <−0.40 between HYDL and GRACE/GLDAS-derived TWS changes accounts for 55.1% and 55.1% (SMC), 13.0% and 7.4% (temperate monsoon climate, TMC), 6.7% and 13.3% (temperate continental climate, TCC), 32.3% and 38.7% (plateau climate, PC), respectively. For the non-seasonal term, although the proportion with CC <−0.40 in each climate type decreases mainly due to the influence of local geodynamic and human activities, especially in the SMC and PC regions, GNSS site vertical deformations still show good capability in monitoring hydrological extremes. The results provide valuable information for better application of GNSS to hydrology.