To investigate the impact of relative humidity on the mechanical properties and microscopic pore structure of air lime-stabilized compressed earth, unconfined compression strength (UCS), mercury intrusion porosimetry (MIP) and scanning electron microscopy (SEM) tests were conducted by varying the air lime content and relative humidity (RH) in compressed earth. The results revealed three typical failure modes in unconfined compression strength tests of lime-stabilized compressed earth. Both the unconfined compression strength and characteristic parameters of pore structure in lime-stabilized compressed earth exhibited a trend of initial increase, following by a decrease as the air lime content and relative humidity increased. At the microscopic level, the relative humidity and air lime content interacted with the changes in macro-level unconfined compression strength, and the increase of both could promote the lime hydration reactions, inhibiting the crack development. Considering the influence of relative humidity, mechanical performance, and economic benefit improvement, the recommended air lime content for high humidity and low humidity were 0–28% and 0–26%, respectively, offering valuable insights for the optimization and application of lime-stabilized compressed earth as a modern construction material for structural walls.