Technique of loess cavity structure is a kind of technology which can increase the seepage volume of rainfall water and prolong the storage time of water in the soil, but popularization and application of the technology needs theoretical support. This paper uses the method of combining indoor experiment to study the laws of water storage and evaporation dissipation in the loess soil with cavity structure under heavy rain. Results show that, vertical movement of moisture in the soil profile shows as hierarchy, and the cavity layer is the high water-holding-capacity zone; presence of the cavity structure retains more water in the soil body, reduces or prevents the water leakage to the deeper soil, and increases the water storage capacity of the loess soil by 4.7%; cavity structure can reduce the soil evaporation of 12.6%, and significantly inhibits soil evaporation. The study confirms the remarkable function of seepage improved and anti-evaporation of loess cavity structure technology, thus build a solid theoretical basis for the popularization and utilization of it.