With the strengthening of regional and urban–rural interactions, farmers’ livelihood activities are becoming increasingly complex, and environmental factors that influence farmers’ livelihoods have multi-spatial effects. Consequently, comprehending farmers’ livelihoods from a multi-spatial perspective is imperative. Based on surveys conducted in 65 villages and 451 households in Jia County on the Loess Plateau, China, rural locations were deconstructed into natural, traffic, and positional advantages to explore the relationships and mechanisms between the rural environment and farmers’ livelihood stability from local, urban–rural, and interconnected multi-spatial perspectives. We found that 77% of the villages achieved a moderate or high Rural Location Advantage Index (RLAI) rating; 45% still lack natural advantages and are mainly located in hilly and sandy areas because of the fragile ecological environment of the Loess Plateau. Additionally, the Livelihood Stability Index (LSI) was moderate overall, but with significant spatial heterogeneity, and 72% of farmers possess strong transition capacity and have shifted away from relying on monoculture as their primary livelihood strategy. While a certain coupling correspondence exists between the LSI and RLAI, the interaction is intricate rather than a simple linear agglomeration process. The spatial variation in the LSI results from the superposition or interaction of multi-spatial location factors. The rural–urban spatial location factors are the key control element of the LSI and the interaction between rural–urban and local spatial location factors has the greatest influence on the LSI. It is simple for interconnected spatial location factors to produce a scale correlation effect, and have non-negligible effects on farmers’ livelihoods when they interact with other spatial location factors. Understanding the impact of rural location on farmers’ livelihood from a multi-spatial perspective is of great practical significance for identifying the causes of spatial heterogeneity in livelihoods and enhancing multi-level policy coordination on rural revitalization and livelihood security.