Habitat quality (HQ) is of great significance to regional sustainable development, which is a key link for regional ecological security and human welfare. Assessing the temporal and spatial evolution of HQ caused by land-use change could provide a scientific basis for regional ecological protection and land management. Here, based on the ArcGIS platform and the InVEST model, this study quantified the spatial and temporal evolutions of land use, landscape patterns, and HQ from 1985 to 2015, in Taihu Lake Basin (TLB). Hotspot analysis tools were used to identify the spatial agglomeration and evolution characteristics of HQ in TLB. The results showed that, (1) the land use and landscape pattern in TLB experienced dramatic change process during 1985–2015, with the dominating conversion being from farmland to construction land, which led to an increase in landscape heterogeneity and fragmentation. (2) The HQ was generally reduced in the past 30 years. In particular, the decline of HQ was extremely severe in the peripheral area of cities and roads, due to urban sprawl. (3) Regarding the spatial distribution of HQ, the northern and eastern areas were generally higher, while the western and southern areas were generally lower. The hotspots areas were mainly located in the southwestern mountain area and west-central lake area, while the cold spots areas were mainly located in urban areas in the north and the east. (4) The area and degree of habitat degradation were both increased significantly due to land-use change, and the degradation of the Taihu Lake was highlighted. Strengthening the ecological environment management and reducing the threat of urban expansion to the HQ is urgently required. This study could help understand HQ of the TLB and provide a scientific basis for decision-makers.