The interplay between urbanization and ecological environmental efficiency has gained increasing significance in the context of sustainable development, as rapid urban growth poses challenges to resource consumption, greenhouse gas emissions, and the overall ecological well-being of urban areas. Understanding and analyzing the coordinated development of urbanization and ecological environmental efficiency, as well as assessing the influence of drivers on this relationship, is crucial for developing effective policies and strategies that promote environmentally sustainable urban development. This study establishes an urbanization index based on four key aspects: economy, society, population, and ecology. This investigation focuses on 30 provinces in China spanning from 2011 to 2020. The following methods are applied: global Malmquist–Luenberger productivity index, entropy method, TOPSIS model, coupled coordination degree model, panel-corrected standard error (PCSE), and feasible generalized least squares (FGLS) models. The empirical results demonstrate a favorable level of coordinated development between urbanization and the ecological environment overall, with more pronounced regional evolution trends. The trade openness, energy structure, and digitalization level play significant roles in effectively promoting the coordinated development of urbanization and the ecological environment to varying extents. The growth of trade openness and digitalization level promote coordinated development between urbanization and the ecological environment by 0.125 and 0.049, respectively. However, the increase in the energy structure decreases it by 0.509. These results have significant implications for policymakers, urban planners, and stakeholders, emphasizing the need for a balanced approach that prioritizes ecological environmental protection in urbanization efforts. This study underscores the importance of sustainable urban development strategies to ensure long-term ecological and environmental sustainability.