Analyzing the evolution of regional habitat quality is an important means to assess the impact of engineering activities on ecosystems. Taking Xiangyu in the Feng River Basin as the study area, the land use change in 1985 and 2022 was analyzed, and the habitat quality and degradation degree were evaluated by using the Integrated Assessment and Tradeoff of Ecosystem Services (InVEST) model. The results showed that from 1985 to 2022, the transfer of land use types in Xiangyu mainly occurred on dry land, bare land, forest land, and industrial land. The area of dry land and bare land converted into industrial land is 10,825.15 m2 and 249,123.09 m2, respectively, and affected by the measures of returning farmland to forest and grassland in Shaanxi Province, the area transferred to forest land reached 371,471.87 m2, mainly from dry land and bare land. The continuous expansion of industrial land led to a significant decline in habitat quality, and the areas with high habitat degradation were concentrated in forest land in a large range, which indicated that forest land was vulnerable to industrial land expansion. Land use change and human engineering activities are the main factors affecting the ecological environment, and limiting the expansion rate of industrial land is the key to protecting the ecological environment.