The northern Chinese steppe is situated in the periphery of the East Asian Summer Monsoon and exhibits high sensitivity to variations in monsoon intensity and global climate change. Therefore, comprehending the climatic evolution history of this region is pivotal for elucidating early human civilization development. The research focuses on a fully enclosed crater lake located in the northern Chinese steppe by utilizing n-alkanes, total organic carbon (TOC), total nitrogen (TN) in lake sediments, based on AMS-14C dating analysis, the climatic and environmental evolution history of this region from the last deglaciation to the middle Holocene has been reconstructed, and the impact of climate change on the evolution of early human civilization is elucidated. The findings indicate that the EASM driven by summer solar radiation, exerts control over the climate and hydrology in the steppe region of northern China. Since the last deglaciation, the gradual warming and humidification of the climate environment have significantly enhanced the animal and plant resources, thereby establishing a solid foundation for the transition of early human populations in northern Chinese steppe from high-mobility hunter-gatherers to settled communities. Additionally, this climatic shift has provided an optimal backdrop for the emergence of primitive agriculture. The changes of stone tool assemblages unearthed at related sites also confirm the above views. However, the climate model underwent rapid changes during the period of 7.2–6.4 cal kyr BP, leading to the occurrence of extreme arid climate events. Consequently, regional precipitation decreased, lake ecology became imbalanced, woody plants retreated in the basin, and vegetation coverage was greatly reduced. The aforementioned factor may have played a pivotal role in the disappearance of early populations within the region. Consequently, climate and environmental change not only serve as the primary driving force behind human civilization’s development but also act as an inexorable catalyst for its decline.