The strength-formation mechanism for industrial-construction residue cement stabilization of crushed aggregate (IRCSCA) is not clear. To expand the application range for recycled micro-powders in road engineering, the dosages of eco-friendly hybrid recycled powders (HRPs) with different proportions of RBP and RCP affecting the strengths of cement-fly ash mortar at different ages, and the strength-formation mechanism, were studied with X-ray diffraction (XRD) and scanning electron microscopy (SEM). The results showed that the early strength of the mortar was 2.62 times higher than that of the reference specimen when a 3/2 mass ratio of brick powder and concrete powder was mixed to form the HRP and replace some of the cement. With increasing HRP content substituted for fly ash, the strength of the cement mortar first increased and then decreased. When the HRP content was 35%, the compressive strength of the mortar was 1.56 times higher than that of the reference specimen, and the flexural strength was 1.51 times higher; XRD and SEM studies of the hydrated cement mixed with HRP showed that the amount of CH in the cement paste was reduced by the pozzolanic reaction of HRP at later hydration ages, and it was very useful in improving the compactness of the mortar. The XRD spectrum of the cement paste made with HRP indicated that the CH crystal plane orientation index R, with a diffraction angle peak of approximately 34.0, was consistent with the cement slurry strength evolution law, and this research provides a reference for the application of HRP to produce IRCSCA.