Shale is an important self-sourced reservoir rock in many sedimentary basins worldwide. In this research work, a geochemical history of variations in the sedimentary environment of the lacustrine basin is analyzed based on extensive shale samples collected from the lower 3rd member (Es3L) and upper 4th member (Es4U) of the Paleogene Shahejie Formation in the Boxing Sag (Dongying Depression, East Coast of China). The representative shale samples were analyzed for total organic carbon (TOC) contents, mineralogical composition, the concentration of different elements (major, minor, and trace), kerogen types and vitrinite reflectance (Ro), and different sedimentary structures to understand the evolution of the depositional settings and their effect on the distribution of shale lithofacies in this basin. The TOC content in this shale ranges from 0.08 % to 13.6 %. Ro values range from 0.55 to 1.19 % with type-I to type-II kerogens. The studied shale is composed of calcite (average 37.83 wt%), dolomite (avg. 10.47 wt%), quartz (avg. 23.8 wt%), plagioclase (avg. 3.91 wt%), clay (avg. 20.84 wt%), and pyrite (avg. 2.85 wt%). Seven lithofacies have been established including mixed shale, calcareous shale, laminated limestone, argillaceous shale, dolomitic shale, siliceous shale, and siliceous dolomite based on mineral composition, TOC contents, and sedimentary structures. Different geochemical proxies including Sr/Ba, Ca/Ca + Fe, C-values, CIA values, Ti/Al, Al/Al + Fe, Al/Ti, V/V + Ni, Ni/Co, and Fe/Ca + Mg were used to interpret salinity, paleoclimate, detrital influx, provenance, paleoredox and water depth of the depositional environment in the studied shale. The detailed interpretation of the sedimentary environment suggested that during the deposition of Es3L shale, the terrigenous influx was high in shallow to a deep open lacustrine system with higher primary biogenic productivity. Semi-humid climatic conditions with higher precipitation rates prevailed during the deposition of this shale. On the other hand, relatively limited terrigenous input with low bioproductivity prevailed during the deposition of Es4U shale in the study area. Semiarid to humid climatic conditions with strong evaporation prevailed during the deposition of this shale. In this research work, a detailed depositional model of the Es3L–Es4U shale in Boxing Sag is established. The interpretations deduced from the current research work are likely to expand the knowledge of shale lithofacies and the genesis of lacustrine fine-grained sedimentary rocks, as well as can offer a theoretical foundation for lacustrine shale oil exploration and development.