Studies on evolution have made significant progress in multiple disciplines, but evolutionary theories remain scattered and controversial. Here we deduce that, thermodynamically, many carbon-based entities (CBEs) on the Earth tend to absorb energy from widespread relatively temperate heat streams on the Earth flowing from the solar, geothermal, and other energy sources, to form higher-hierarchy CBEs (HHCBEs). This has been the driving force of evolution leading to accumulation and regeneration of HHCBEs for billions of years. We further deduce three progressive mechanisms of evolution from the driving force. We hence establish the CBE evolutionary theory (CBEET) which suggests that evolution driven hierarchy-wise by thermodynamics favors fitness and diversity. The CBEET provides novel explanations for origin of life (abiogenesis), macroevolution, natural selection, sympatric speciation, and animal group evolution in a comprehensive and comprehensible way. It elucidates that altruism, collaboration, and obeying rules with increasing freedom are important throughout the CBE evolution. It refutes thoroughly the notion that negative entropy leads to order in biology which is distinct from order in thermodynamics. It integrates with research advances in multiple disciplines and links up laws of physics, evolution in biology, and harmonious development of human society.