The crown closure of Platycladus orientalis forests has a wide-ranging impact on vegetation and soil, thereby affecting the overall functioning of the ecosystem. There is limited research on the effects of the Platycladus orientalis forest crown closure on changes in community plant functional traits, and their interactions are not yet clear. Therefore, we investigated 50 plots of different types of Platycladus orientalis crown closure, and we measured the functional traits of nine shrub species and 68 herb species in 50 plots under five different densities of Platycladus orientalis forests in the Loess Plateau. The consequence of Pearson’s correlation analysis showed significant positive correlations between LC and LTD, LN and LP, LN and LNP, LN and LV, LN and H, LP and LV, LP and H, and SLA and LV (p < 0.05). LC was significantly negatively correlated with LP, LC with SLA, LC with LV, LN with LTD, LP with LNP, LP with LTD, and LTD with H (p < 0.05). Only the soil phosphorus content (SP) and soil water content (SWC) showed a significant positive correlation with multiple plant functional traits. The crown closure of Platycladus orientalis forests increased significantly, as did the plant functional features. Changes in the Platycladus orientalis forest crown closure significantly increased the LC, LV, LN, LP, and SLA in plant functional traits. An increase in Platycladus orientalis forest crown closure significantly increased the soil organic carbon (SC), soil phosphorus content (SP), soil nitrogen content (SN), soil water content (SWC), field capacity (FC), and soil porosity (PO). Based on a structural equation model, we found that, while changes in the Platycladus orientalis forest crown closure did not directly affect plant functional traits, they could indirectly influence these traits through soil factors, primarily the soil water content (SWC) and soil phosphorus content (SP) (p < 0.05). Additionally, the mechanisms of the Platycladus orientalis forest crown closure’s impact on different functional traits vary. The research results provide scientific elements for the ecological restoration of Platycladus orientalis forests on the Loess Plateau.