In order to improve the quality of solid waste utilization, this study simultaneously used recycled coarse aggregate and recycled fine aggregate to prepare recycled aggregate concrete, with fly ash partially replacing cement as a binder. After the particle gradation of recycled aggregate was artificially adjusted into continuous gradation, the effects of accelerated carbonation on the performance and microstructure of recycled concrete were studied. The microstructural change was analyzed using mercury intrusion porosimetry and scanning electron microscopy–energy dispersive spectroscopy. Additionally, the environmental benefits of the recycled concrete were evaluated based on carbon emissions using the life cycle assessment method. The experimental results indicate that accelerated carbonation can increase the compressive strength of recycled concrete by up to 13%, and its microstructure becomes more compact after carbonation. The carbon emissions are reduced by more than 13% after using 20% fly ash, contributing to sustainable development. Additionally, the optimal replacement rate of recycled fine aggregate should be controlled to under 15% when both recycled coarse and fine aggregates are used.