This study investigates the influence of shallow water-bearing sand layers on surface subsidence characteristics in coal mining areas with thick loose strata, with the ultimate goal of contributing to sustainable environmental protection. Firstly, a numerical simulation test was designed to analyze and study the influence of the loose layer thickness, mining height, bedrock slope, and sand inclusion on the surface movement and deformation characteristics. Secondly, the mechanical model of seepage flow in the sand layer was established to study the influence mechanism of the internal stress distribution of the sand layer and the seepage of the water body after mining on the surface subsidence. Finally, by studying the law of surface subsidence corresponding to the mining of 3205 working face in a mine, it was found that mining caused the partial overlying soil layer to move integrally and generate a large displacement difference with the adjacent layer, which verifies the conclusions of numerical simulation and mechanical analysis. The results of the study show that the thickness of the loose layer is the main control factor that causes the surface subsidence range and the building damage to increase; the shallow water-bearing sand-bearing layer has two types of movements: displacement and flow. The critical hydraulic slope has not reached the sand. The layer has a linearly increasing horizontal displacement value in the thickness direction; when the critical hydraulic slope is reached, the sand layer cannot transmit the frictional force, causing the overlying soil layer to slide as a whole. Both forms are prone to tensile damage on the surface. The research results provide a theoretical basis and practical case for surface subsidence reduction and green mining under similar geological conditions.