Aiming to enhance the comprehensive utilization of steel slag (SS), a solid waste-based binder consisting of SS, granulated blast furnace slag (BFS), and desulfurization gypsum (DG) was designed and prepared. This study investigated the reaction kinetics, phase assemblages, and microstructures of the prepared solid waste-based cementitious materials with various contents of SS through hydration heat, XRD, FT-IR, SEM, TG-DSC, and MIP methods. The synergistic reaction mechanism between SS and the other two wastes (BFS and DG) is revealed. The results show that increasing SS content in the solid waste-based binder raises the pH value of the freshly prepared pastes, advances the main hydration reaction, and shortens the setting time. With the optimal SS content of 20%, the best mechanical properties are achieved, with compressive strengths of 19.2 MPa at 3 d and 58.4 MPa at 28 d, respectively. However, as the SS content continues to increase beyond 20%, the hydration process of the prepared binder is delayed. The synergistic activation effects between SS and BFS with DG enable a large amount of ettringite (AFt) formation, guaranteeing early strength development. As the reaction progresses, more reaction products CSH and Aft are precipitated. They are interlacing and overlapping, jointly refining and densifying the material’s microstructure and contributing to the long-term strength gain. This study provides a reference for designing and developing solid waste-based binders and deepens the insightful understanding of the hydration mechanism of the solid waste-based binder.