This study aimed to understand the response of vegetation community characteristics in the degraded alpine meadow of the Source Zone of the Yellow River to exclosure of various lengths. Artificial fences were erected to prevent livestock grazing and let the degraded meadow recover naturally as a means of restoration. The research focused on a typical degraded alpine meadow in which four plots were fenced off for three periods of 1 year (E1), 4 years (E4), and 10 years (E10), plus a freely grazed plot as the control. The study compared and analyzed the differences in plant community characteristics, carbon (C), nitrogen (N), and phosphorus (P) reserves, as well as the stoichiometric characteristics of main functional groups in the alpine meadow over different exclosure durations. The results indicated that E10 long-term exclosure significantly increased the aboveground biomass of gramineous plants but reduced the aboveground biomass of miscellaneous grasses. However, when compared to E4 short-term exclosure, E10 resulted in a reduction in the aboveground biomass of Cyperaceae plants. On the other hand, E4 medium-term exclosure significantly increased the aboveground biomass of Gramineae and Cyperaceae. Exclosure significantly increased the nitrogen (N) and phosphorus (P) reserves of the aboveground plant communities. Among these communities, the plant communities in the E10 long-term exclosure had the highest N and P reserves. However, this exclosure length also led to a significant reduction in plant diversity. Furthermore, except for Cyperaceae, all functional groups were observed in E10 and E4 plots. The carbon–nitrogen ratio and carbon–phosphorus ratio of these groups were significantly lower than those of groups G and E1. Medium-term exclosure (E4) has a positive impact on the aboveground biomass as well as plants’ nitrogen and phosphorus reserves. However, long-term exclosure (E10) has been observed to decrease species diversity and nutrient utilization efficiency of alpine meadow vegetation, which can be detrimental to the sustainable development of the alpine meadow ecosystem. Therefore, it is not recommended to implement long-term exclosure. Instead, a moderate level of grazing should be adopted after 4 years of exclosure.