The settlement space along China’s Grand Canal is an important part of cultural heritage, boasting high value of conservation and inheritance as a museum of local culture in an active state. The paper is aimed at revealing the current situation and satisfaction with the settlement space environment along China’s Grand Canal Tianjin Section from the perspective of resident perception. We set up a structural equation model to perform an empirical analysis of the inherent relation of the components of the settlement space environment along China’s Grand Canal Tianjin Section and the inherent law influencing its current state. The research results show that the ecological factor of life along China’s Grand Canal exerted a positive influence on the ecological factor of production and the path coefficient was 0.344. The ecological factor of life and the factor of accessibility were in a relation of positive influence and the former had the most prominent influence on the latter, with a path coefficient of 0.534, while the path coefficient of the influence of the latter on the former was 0.131. The factor of social culture exerted a positive influence on the ecological factor of life, with the path coefficient being 0.765. The research conclusion analyzed the realistic difficulties of the settlement space environment along China’s Grand Canal, revealed the inherent law between different surveyed factors and provided basic reference for feature extraction, evaluation and optimized development of the settlement space along China’s Grand Canal.