Our understanding of the mechanisms of plant response to environment fluctuations during plants’ phenological phases (phenophases) remains incomplete. Continuous chlorophyll fluorescence (ChlF) measurements were acquired from the field to quantify the responses in a desert shrub species (i.e., Artemesia ordosica Krasch. (A. ordosica)) to environmental factors by assessing variation in several ChlF-linked parameters and to understand plant acclimation to environmental stresses. Maximal quantum yield of PSII photochemistry (Fv/Fm) was shown to be reduced by environmental stressors and to be positively correlated to air temperature (Ta) during the early and late plant-growing stages, indicating a low temperature-induced inhibition during the leaf expansion and coloration phases. Effective quantum yield of PSII photochemistry (ΦPSII) was negatively correlated to incident photosynthetically active radiation (PAR) irrespective of phenophase, suggesting excessive radiation-induced inhibition at all phenophases. The main mechanism for acclimating to environmental stress was the regulatory thermal dissipation (ΦNPQ) and the long-term regulation of relative changes in Chl a to Chl b. The relative changes in photosynthetic energy utilization and dissipation in energy partitioning meant A. ordosica could acclimatize dynamically to environmental changes. This mechanism may enable plants in arid and semi-arid environments to acclimatize to increasingly extreme environmental conditions under future projected climate change.