Due to the limited hydration capacity, solidification/stabilization (S/S) with waste concrete powder (WCP) has a low strength. Carbonation can reduce carbon dioxide (CO2) emissions and improve strength of lead-contaminated soil, but its mechanism and environmental behaviors are unclear. In light of this, a comprehensive study was conducted on the compressive strength, lead immobilization, conductivity characteristics, and carbonation mechanism of carbonated Pb-contaminated soils stabilized with WCP compared to calcining 600 °C WCP. Results indicated that with carbonation, the compressive strength of the samples was significantly improved at the early stage (1 d), resulting in increased unconfined compressive strength (UCS) by 2.5-5.2 times due to the filling of pores by calcite. It negatively affected the lead immobilization capacity of highly doped (30%) samples, while this effect reversed after 3 d of carbonating due to the reduced alkaline environment. The lead immobilization capacity decreased after 28 d of carbonating due to the cracking of samples and the influence of a lower pH on the solubility of lead-carbonated hydroxide ((PbCO3)2Pb(OH)2). The water evaporation (saturation <16.8%) led to dry shrinkage cracking and decreased UCS of the samples. Based on this finding, a conductivity model was developed for carbonated and cured samples, accurately predicting changes in saturation levels (R2 = 0.98). A relationship between conductivity and UCS or lead immobilization capacity was proposed. This research proposed an innovative method for the reduction of CO2 emission as well as laid down a theoretical basis for the recovery of WCP and lead-contaminated soils through carbonation.