An innovative type of precast braced concrete shear (PBCS) wall has been tested and verified to have comparable shear resistances relative to conventional cast-in-place reinforced concrete (RC) shear walls. The triangular or rectangular embedded expanded polystyrene (EPS) boards in PBCS wall panels can not only considerably reduce concrete use but also reduce the structural weight. To understand the functions of EPS boards in more depth, this paper investigates the effects of the thickness ratio of different shapes of EPS on the hysteretic behaviors of PBCS walls with various shear span ratios (SSRs). The finite element (FE) models of PBCS walls based on the multi-layer shell element are developed and verified to be sufficiently accurate in comparison with the experimental results. The analysis results indicate that the bearing capacity, lateral stiffness and ductility of PBCS walls show a downward trend with the increase in the thickness ratio of EPS boards. The rectangular EPS board has a more pronounced effect on weight reduction as well as concrete use reduction compared to the triangular EPS board under the same thickness ratio. The formulations regarding the bearing capacity are developed and show good agreement with the numerical results. The thickness ratio limit for PBCS walls to satisfy the ductility requirement is addressed. This investigation not only provides insight into the cyclic behavior of PBCS walls with varied thickness ratios but also demonstrates the potential applicability of PBCS walls in precast concrete (PC) structures for both thermal insulation and earthquake resistance purposes.