This paper presents research considering hydraulic as well as swelling and shrinkage characteristics of potential recycled fine particle materials for compacted clay liner for sustainable landfills. Five locally available clay soils mixed with 10% (by mass) of NaP1 recycled zeolite were tested. The performed analysis was based on determined plasticity, cation exchange capacity, coefficient of saturated hydraulic conductivity after compaction, several shrinkage and swelling characteristics as well as, finally, saturated hydraulic conductivity after three cycles of drying and rewetting of tested specimens and the reference samples. The obtained results showed that addition of zeolite to clay soils allowed reduction in their saturated hydraulic conductivity to meet the required threshold (≤1 × 10−9 m/s) of sealing capabilities for compacted clay liner. On the other hand, an increase in plasticity, swelling, and in several cases in shrinkage, of the clay–zeolite mixture was observed. Finally, none of the tested mixtures was able to sustain its sealing capabilities after three cycles of drying and rewetting. Thus, the studied clayey soils mixed with sustainable recycled zeolite were assessed as promising materials for compacted liner construction. However, the liner should be operated carefully to avoid extensive dissication and cracking.