Rapid urbanization and industrialization and enhanced ecological protection measures have greatly influenced landscape change, which has exacerbated regional landscape competition and conflicts and indirectly affected the supply of ecosystem services. Clarifying the relationship between ecosystem service change and landscape change is useful for understanding the impact of ecosystem conversion on socio-economic development and providing a knowledge base for relevant policy decisions. In this study, we used remote sensing technology to process Landsat TM/ETM+/OLI imageries, combined with transformation analysis and kernel density analysis to study the spatial and temporal characteristics of land use change in Wuhan City from 1980 to 2020. We also estimated the ESV in the region using the improved unit area value equivalent method to reveal the trends of ESV changes in Wuhan. The results showed that land use changes in Wuhan during 1980–2020 occurred mainly in terms of decreases in farmland, forestland, and bare land, as well as increases in built-up land and water bodies. The built-up land was mainly concentrated in the main urban areas, but its area in each suburban area has increased in recent years. In contrast, farmland was mainly distributed in suburban areas, and its area has been decreasing in recent years due to the impact of urban expansion. However, the reduction is compensated for by the reclamation of ecological land such as grassland and forestland, which has aggravated the loss of ecosystem service values in the study area. In addition, human activities such as urban expansion have increased the demand for water resources, while also leading to ecological problems such as water scarcity and water quality degradation, which have caused serious losses to key ecosystem services in Wuhan city. Therefore, in order to alleviate the competition and conflicts in the landscape and mitigate the loss of ecosystem service values in this area, we have proposed some constructive suggestions for future urban planning and water quality improvements in Wuhan. The focus of these suggestions is on controlling the expansion of built-up land, as well as the conservation of ecological land and resource protection. Meanwhile, our findings can also provide reference information for land resource planning and ecological monitoring, and help researchers to understand the contribution of ecosystem service functions in relation to socio-economic development.