With the vigorous development of the medical industry in China, residents’ health has been significantly improved. However, along with the income gap, urban–rural gap, and healthcare resource gap caused by economic development, health inequality has become a fundamental barrier to the promotion of residents’ health. The popularity of the Internet has helped close the gap to some extent, but it also has drawbacks. Using data from the China Family Panel Studies (CFPS) from 2014 to 2018, we evaluated the effects of Internet usage on health disparities among residents using fixed effect models, mediation effect models, and other methodologies. The findings indicate that Internet usage can help to minimize health inequality since it lowers income inequality, promotes health consciousness, and reduces depression. Furthermore, Internet usage plays a greater role on the health improvement of the middle-aged, the elderly, urban residents, and females. Although the Internet has brought “digital dividends” in general, the Internet usage rates among different groups also reveal that there is a clear “digital gap” among rural residents, elderly groups, and low-income groups. These results have significant implications for promoting healthcare equality.