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The low permeability and thinly interbedded reservoirs have poor physical properties and strong interbedded heterogeneity, and it is difficult to control the hydraulic fracture (HF) height and width during hydraulic fracturing, which affects the effect of HF penetration and sand addition. In this work, a three-dimensional fluid–solid fully coupled HF propagation model is established to simulate the influence of interlayer heterogeneity on vertical HF height and HF width, and the relationship between HF length and HF width under different treatment parameters is further studied. The results show that, in thin interbedded strata, the high interlayer stress contrast, high tensile strength, and low Young’s modulus will inhibit the vertical propagation of HFs. The interlayer heterogeneity results in the vertical wavy distribution of HF width. Under the high interlayer stress contrast, Young’s modulus, and tensile strength, the HF width profile becomes narrow and the variation amplitude decreases. The HF length decreases and the HF width increases as the injection rate and fracturing fluid viscosity increase. This study is of great significance for clarifying the vertical propagation pattern in thinly interbedded reservoirs, optimizing the treatment parameters, and improving the effect of cross fracturing and proppant distribution.