Using data collected from a specially designed experiment at the Dunhuang Station (40°10′N, 94°31′ E, 1150 m) from September 2017 to September 2018, we have characterized the influences of soil moisture and solar altitude on surface spectral albedo in an arid area. The specific settings of our experiment allowed us to minimize the influences of underlying surface, cloud cover, aerosol and weather conditions, and thus highlight the influence of soil moisture and solar altitude. During the timespan of the experiment, we observed the annual mean surface albedo of global radiation (GR), ultraviolet radiation (UV), visible radiation (VIS) and near-infrared radiation (NIR) to be 0.24, 0.11, 0.24 and 0.25. A significantly negative linear correlation between surface albedo and soil moisture was identified, with the correlation coefficients between GR, UV, VIS, NIR and soil moisture being −0.68, −0.75, −0.70 and −0.61. In addition, we identified an exponential relationship between surface albedo and solar altitude. The exponential regression coefficients are −0.21, −0.077, −0.53 and −0.21, respectively. From these analyses, we derived a new two-factor parametric formula for depicting the influence of soil moisture and solar altitude on surface spectral albedo. Using observation data, we demonstrate that the formula recapitulates the real-world relationship between soil moisture, solar altitude and surface spectral albedo with little deviation. These findings may help us gain a deeper understanding of improving land surface parameterizations and have potential implications for solar energy research and applications.