Urban rail transit systems significantly influence land use patterns in newly developed areas, yet their impact on spatial organization and functional characteristics remains understudied. This research examines Wuhan Metro Line 11, analyzing land use within an 800 m radius of stations using Point of Interest data, ArcGIS spatial analysis, and locational entropy methods. The study reveals three station types, i.e., single-function, mixed-function, and underdeveloped, each exhibiting distinct spatial differentiation patterns. On this basis, a novel “core-diffusion” model emerges, with the highest density of functional elements observed at approximately 600 m from station centers, challenging conventional proximity assumptions. Three spatial organization modes are identified: single-core independent in two-level axis, single-core continuous in single-level axis, and double-core continuous in two-level axis. These findings contribute to the Transit-Oriented Development literature, offering sustainable insights into optimizing land use around metro stations in rapidly urbanizing contexts. This study also provides a methodological framework applicable to similar urban environments, enhancing the understanding of the complex relationships between metro development and surrounding land use patterns. These results have significant implications for urban planning and policy-making, particularly in emerging economies seeking to balance transit efficiency with sustainable urban growth.