This study adopted the discrete element method (DEM) to explore the key influencing factors on the variations of lateral earth pressure, including packing type, interior friction angle, particle stiffness and particle size. The reference parameters for the DEM model were retrieved from direct shear tests of a rod assembly. Based on the reference parameters, the evolution of lateral earth pressure is further simulated, and a parametric study was conducted. The results showed that: (1) the analysis model could effectively capture the variation of lateral earth pressure under both active and passive conditions; (2) the greater interior friction angle φ interior decreased the active coefficient K a and increased the passive coefficient K p ; (3) increasing particle stiffness decreased the active coefficient K a and increased the passive coefficient K p ; (4) larger particle sizes led to a larger active coefficient K a and a smaller passive coefficient K p ; and (5) when the particle assembly was arranged in order, its lateral pressure was much larger than that of the randomly packed assembly.