Collapsibility is an inherent characteristic of loess, which is often treated by adding industrial materials such as cement and lime in engineering, it seriously damages the reclamation performance of soil. Degradable calcium lignosulfonate (CLS) has a good prospect in balancing soil stabilization and environmental protection. Therefore, this paper evaluates the collapsibility and mechanical characteristics of CLS improved loess based on the collapsibility test, grey correlation analysis, and unconfined compressive strength test. The results show that when the content is 3%, the stabilization effect is most obvious, and the collapsibility coefficient can be reduced by more than 95%. The order of grey correlation degree of collapsibility on each index is moisture content, void ratio, dry density, and CLS content from large to small. The unconfined compressive strength increases rapidly in the first 14 days and then decreases with the content. When the content is too high, the strength of improved loess is lower than that of plain loess. Combined with SEM, microstructure parameters, and X-ray diffraction analysis, the carbonate minerals can play the role of filling pores and connecting soil particles, which reduces the grain size of mineral composition and the thickness of the electric double layer and makes the structure more compact. The research results have scientific significance and application value for the ecological modification research and engineering application of soil.