This study aims to analyze the indoor environment preferences of Chinese urban elderly, to create a living environment that is beneficial to the physical and mental health of Chinese elderly, and to enhance their sense of well-being. Based on an in-depth study of 306 urban elderly’s bedroom indoor environment preference in 21 Chinese provinces, using questionnaire method, this study concludes that: (1) Group characteristics: for urban elderly, the key words for bedroom color and lighting preference are low saturation, bright, warm tones and warm white light; personal characteristics such as the gender, physical condition, and education have a strong correlation with factors in the indoor living environment; (2) Physical environment preferences: gender presents the most significant potential effect on elderly physical environment preferences; (3) Established indicator system: the indicator system includes five main indicators of basic bedroom conditions, bedroom materials, bedroom colors, bedroom physical environment and other soft furnishings, and 22 sub-indicators. This study has some implications for guiding the design of elderly’s apartments and the bedroom environment, as well as effectively using the indoor environment to meet the physiological and psychological needs of the urban elderly.