This paper investigates the total environmental impacts of a thermal caisson (TC) system by implementing a life cycle assessment methodology. The total environmental impacts consider the comprehensive effect on the environment across two life cycle stages: manufacturing and operation. A comparison between the TC results and two different HVAC systems, including air-conditioning/furnace and conventional ground-source heat pump (GSHP) systems, was made by adopting the ReCiPe 2016 methodology. This study reveals that the operation phase is the predominant contributor to environmental impacts across systems, mainly due to its extended duration. Specifically, the operational impacts of GSHPs are substantial, accounting for approximately 87% of total environmental impacts. A TC GSHP system demonstrates a notable environmental advantage, achieving a 79% reduction in total environmental impact when compared to traditional AC/furnace systems. This represents a 21% improvement over conventional GSHP systems. Despite this substantial reduction in total environmental impact, the TC GSHP system shows an almost 5% increase in the resource availability damage category relative to the conventional GSHP, which is attributed to its higher material consumption. These results highlight the TC GSHP system’s superior efficiency in reducing environmental impacts and its potential as a more sustainable alternative in residential heating and cooling applications.