As a vital component of the terrestrial ecosystem, grassland accounts for one-third of the global vegetation system. Grassland degradation has been exacerbated due to extreme overgrazing in China's Inner Mongolia Autonomous Region (IMAR). While conservation was carried out as the Ecological Subsidy and Award Program (ESAP) to mitigate grassland degradation, little is known about its effectiveness in improving the biophysical conditions of grassland. This paper integrates the conceptual frameworks of total socio-environmental systems to assess how ecological systems respond to ESAP, investigate spatial heterogeneity of ESAP, and explore the meddling effects of socio-environmental interactions on ESAP. We integrate ecological, climate, and socioeconomic data and developed several hierarchical linear mixed models (HLMM) to investigate how these factors interact with ESAP in IMAR. Our findings prove that the above-ground biomass between 2011 and 2015 responds significantly to variations in socioeconomic conditions and ecological communities. Available land resources, hospital and medical facilities, and net farmer and herdsman income are the most critical factors contributing to grassland productivity. Primary industries like mining, total consumer retail value, farming, forestry, animal husbandry, fishery productions, and GDP are the most damaging factors affecting biomass. Our study recommends a regionally or locally tailored ecological recovery policy, instead of a generalized one, in the future effort to conserve grassland.