The Qinghai–Tibetan Plateau (QTP), often referred to as the “Third Pole” of the world, harbors alpine grassland ecosystems that play an essential role as global carbon sinks, helping to mitigate the pace of climate change. Nonetheless, alterations in natural environmental conditions coupled with escalating human activities have disrupted the seasonal growth cycles of grasslands, thereby intensifying degradation processes. To date, the key drivers and lifecycle dynamics of Grassland Depletion across the QTP remain contentious, limiting our comprehension of its ecological repercussions and regulatory mechanisms. This study comprehensively investigates grassland degradation on the Qinghai–Tibetan Plateau, analyzing its drivers and changes in ecological suitability during the growing season. By integrating natural factors (e.g., precipitation and temperature) and anthropogenic influences (e.g., population density and grazing intensity), it examines observational data from over 160 monitoring stations collected between the 1980s and 2020. The findings reveal three distinct phases of grassland degradation: an acute degradation phase in 1990 (GDI, Grassland Degradation Index = 2.53), a partial recovery phase from 1996 to 2005 (GDI < 2.0) during which the proportion of degraded grassland decreased from 71.85% in 1990 to 51.22% in 2005, and a renewed intensification of degradation after 2006 (GDI > 2.0), with degraded grassland areas reaching 56.39% by 2020. Among the influencing variables, precipitation emerged as the most significant driver, interacting closely with anthropogenic factors such as grazing practices and population distribution. Specifically, the combined impacts of precipitation with population density, grazing pressure, and elevation were particularly notable, yielding interaction q-values of 0.796, 0.767, and 0.752, respectively. Our findings reveal that while grasslands exhibit superior carbon sink potential relative to forests, their productivity and ecological functionality are undergoing considerable declines due to the compounded effects of multiple interacting factors. Consequently, the spatial distribution of ecologically suitable zones has contracted significantly, with the remaining high-suitability regions concentrating in the “twin-star” zones of Baingoin and Zanda grasslands, areas recognized as focal points for future ecosystem preservation. Furthermore, the effects of climate change and intensifying anthropogenic activity have driven the reduction in highly suitable grassland areas, shrinking from 41,232 km2 in 1990 to 24,485 km2 by 2020, with projections indicating a further decrease to only 2844 km2 by 2060. This study sheds light on the intricate mechanisms behind Grassland Depletion, providing essential guidance for conservation efforts and ecological restoration on the QTP. Moreover, it offers theoretical underpinnings to support China’s carbon neutrality and peak carbon emission goals.