Cemented sand and gravel (CSG) has a wide range of applications in dam construction, and its properties are between rockfill and roller compacted concrete (RCC). A difference in gel content will result in a variance in CSG’s structure and mechanical properties. To investigate the intricate structural mechanical properties of CSG, this study conducted a series of laboratory tests and associated discrete element analyses. Accordingly, the evolution law of the strength parameters of CSG is explored and a statistical damage constitutive model suitable for CSG is established. The main contributions of this study are as follows: (1) The failure mechanism of the CSG was described from the microscopic level, and the evolution law of the strength parameter cohesion and friction angle of the CSG was analyzed and summarized. (2) Based on the particle flow model, the energy development law and the spatiotemporal distribution law of acoustic emission (AE) provide illustrations of the strain hardening–softening transition features and the interaction between cohesion and friction of CSG. (3) The evolution function between the strength parameter and the strain softening parameter was built, and the critical strain softening parameter was determined by the microcrack evolution law of the particle flow model. (4) The accuracy of the evolution curve was confirmed by comparing it to experimental results. (5) Based on the relationship between cohesion loss and material damage, a statistical damage constitutive model was developed using the improved Mohr–Coulomb strength criterion as the micro strength function. The constitutive model can accurately describe the stress–strain curves of CSG with different gel content. Furthermore, the model reflects the strain hardening–softening properties of CSG and reveals the relationship between the weakening of cohesion and material damage at the microscopic level. These findings provide valuable guidelines for investigating the damage laws and microcosmic failure features of CSG and other relevant materials.