The accelerating speed of urbanization has a negative impact on environmental degradation, leading to the imbalance in land-use structure and scarcity of its resources. The imbalance of the existing land-use structure and function distribution, along with the scarcity of land resources, were improved in this article to provide people with more a rational use of land service space. This article specifically contributes to the establishment of an evaluation index system for the evaluation of the suitability of urban land using Geographic Information System (GIS) technology. The topographic aspect of the planning area was determined by the filling and excavation of depth factors and terrain elevation of the planning area. This article also contributes to determining the topographic slope of the planning area and evaluation index weight for the analysis of superposition factors. GIS data processing methods, document analysis methods, and mathematical models are used to evaluate the suitability of construction land. The results of geological engineering, geological foundation, environment, and geological disasters of the northern New Area of Yan’an are combined, and the appropriate evaluation indicators are selected. The results show that the prohibited planning construction area accounts for about 4% of the total planning area. Appropriate construction and more suitable construction in the entire region account for about 96%. The mountain system is connected in form and meaning, and a rainwater collection and management system is established. The proposed method of intercepting flood ditch at the foot of the mountain was designed and adopted, followed by eventual realization of rainwater recycling and safe flood control, making urban land use more reasonable. Therefore, urban land planning is provided with a reasonable reference basis.