The vertical geochemical variations in total organic carbon (TOC) content and major and trace elements of the Lower Cambrian Shuijingtuo Formation from the Yichang Slope in the Upper Yangtze were investigated to assess the environmental conditions (redox conditions, water mass restriction, terrigenous input, relative sea-level terrestrial, and paleoproductivity) and to determine the primary controlling factors for organic matter enrichment. The Shuijingtuo Shale is divided into three intervals. The lithofacies of interval I are mainly black siliceous shale with high TOC content, and interval II is mainly black siliceous shale with moderate TOC content. Interval III consists of black, clay-rich siliceous shale and dark-gray calcareous shale and is characterized by a low TOC content. The effects of diagenesis and hydrothermal activity on the elements were evaluated prior to analyzing the environmental condition. There are good positive correlations between TOC and U/Al or Mo/Al ratios, suggesting that major/trace elements still retain the geochemical signature of the sedimentary environment. Meanwhile, the geochemical proxies consisting of Al, Fe, Mn, and Ti indicate that the study area did not experience hydrothermal deposits. The redox proxies (U/Th, Corg:Ptot, and MoEF–UEF) indicate that the interval I samples were formed under a strong reducing condition. The diagram of TOC vs. Mo indicates that the water mass was moderately restricted during the deposition of interval I shales. Proxies of terrigenous input and relative sea-level (Zr/Al and Zr/Rb) suggest that the organic-rich shales at the bottom were deposited under a relatively high sea-level and experienced minimal input of terrigenous debris from the source area. Additionally, the paleoproductivity indicated by Sibio and (Ni + Cu + Zn)/Al was high for interval I samples. During the interval II period, the relative sea-level began to decline, the seawater still remained in reducing conditions, and there was no change in the productivity, but the input of terrigenous debris increased significantly. In the interval III depositional period, the relative sea-level continued to decrease, the seawater shifted to a dysoxic condition, and the paleoproductivity was also at a lower level. The evolution of the sedimentary environment indicates that the high TOC content in the interval I samples is mainly attributed to the strong reducing condition, the preservation condition and debris dilution together control the organic matter content within the interval II samples, and the low TOC content within the interval III samples is constrained by a combination of the poor preservation conditions and lower paleoproductivity.