The chemical conversion of inert carbon dioxide (CO2) into high value-added chemicals is a continuing challenge. In this work, an experimental and theoretical mechanism study is presented for one-pot synthesis of glycerol carbonate (GC) from CO2, glycerol (Gly), and propylene epoxide (PO) catalyzed by 1,8-diazabicyclo[5.4.0]undec-7-enenium iodide (HDBUI) ionic liquid. 92% GC yield was obtained in the one-pot reaction through cycloaddition of CO2 with PO to produce propylene carbonate (PC), followed by transesterification of Gly with PC to yield targeted products. Density functional theory (DFT) calculations were used to unveil the HDBUI-mediated catalytic mechanism and key catalytic species. It was revealed that the HDBUI-catalyzed cycloaddition was assisted by the hydrogen bond donor Gly, the transesterification reactant, by promoting the ring-opening of PO and the insertion of CO2. By activating Gly hydroxyl group, alkaline HDBUI-bonded propan-1-ylium-2-yl carbonate, an intermediate in cycloaddition, catalyzed transesterification. The complementary mechanism of cycloaddition and transesterification in the one-pot provides a feasible method for utilizing inert CO2.