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The paper proposes a method to simulate the mechanical behavior of compact rock considering hydromechanics by combining physical experiments and numerical analysis. The effectiveness of the constructed method is validated by the comparison between the numerical and physical results of triaxial shear experiments on sandstone in seepage conditions. Based on the validated method, the stability of underground water-sealed oil and gas storage caverns in surrounding compact sandstone during excavation is analyzed. The main findings are as follows: The intrinsic permeability of compact sandstone has a power function relationship with the porosity; the combination of the porous media elastic model and the modified Drucker–Prager plasticity model can preciously represent the mechanical properties of compact sandstone; the proposed method can accurately replicate the hydromechanical response of compact sandstone in seepage conditions; the effects of hydromechanical effects have significant impacts on the stability of surround compact sandstone during the excavation of underground water sealed oil and gas storage caverns, which causes the obvious increase in stress, deformation and plastic deformation zones of the surrounding compact sandstone and remarkable decrease in the stability safety factor.