Straw returning has been shown to improve farmland soil, increase crop yield, and reduce global warming. This study investigated the models of six rice straw-returning techniques based on the life cycle assessment method. Compared to the direct modes, the indirect ones showed a greater environmental impact; up to 20.56 times in acidification and emission potentials. There was no significant difference in climate change among the six types. Except for the burning effect, all other modes showed improvement in soil fertility; phosphorus and organic matter content increased by 66.66% and 30.85%, respectively, microbial biomass carbon content doubled (105%), the four organic carbon components increased by >50%, crop morbidity was reduced, and diversity of soil fungus was improved. Feeding, as an indirect method for enhancing soil fertility and economic benefits, is set to emerge as a leading practice in China’s straw management. However, straw-returning technology is limited by cost, greenhouse gases, and increased risk of diseases and pests. There is an urgent need for further improvement and development of carbon sequestration and emission reduction in China’s agriculture.