Lacustrine shale is an important target for the exploration of unconventional oil and gas in China beyond marine shale gas. However, the formation environment of lacustrine shale differs from that of marine shale, resulting in a different reservoir composition, organic matter, oil and gas content, and hydrocarbon mobility. In this study, the Chang 7 shale of the Yanchang Formation in the Ordos Basin was used to analyze the effect of volcanic activity on the paleoproductivity and preservation conditions during the formation of lacustrine shale. The results show that algae and bacteria were developed before the eruption. After the eruption, the number of bacteria declined, but the increased prosperity of algae reflects that the volcanic activity enhanced ancient productivity. The sulfate generated by volcanic activity promotes bacterial sulfate reduction, and the produced H 2 S leads to a strong reducing environment in the waterbody, which is conducive to the preservation of organic matter. Organic geochemical analysis shows that the black shale in the shale strata has a high total organic carbon (TOC) content and strong hydrocarbon generation potential, whereas the tuff has a low TOC content and can scarcely generate hydrocarbons, indicating that the tuff deposited by volcanic activity cannot be considered as effective source rock. In terms of storage space, shale is mainly laminar and dispersed, and it includes organic and inorganic pores. The development of organic pores is affected by thermal maturity, whereas inorganic pores mainly occur between detrital particles and crystals. Tuff is mainly supported by heterogeneous matrix and associated with alteration. Its pores include inter- and intragranular mineral pores. The development of tight sandstone pores is affected by compaction, cementation, and dissolution, which mainly consist of intra- and intergranular pores. The Chang 7 lacustrine shale generally contains oil, but different lithologies have different oil drainage efficiencies. Sandstone and shale exhibit the best and worst oil drainage efficiency, respectively. It is mainly affected by the pore size distribution, fluid properties, and rock wettability. Therefore, the development of shale oil should mainly focus on lacustrine shale formations with interbeds. The mutual dissolution of organic matter and hydrocarbons in the shale section leads to the poor mobility and difficult development of hydrocarbons.