This paper, taking the example of the rural settlement in north Shaanxi province, explores the effective approaches to preserving the traditional architecture and its culture and concentrates on study and protection of the cultural characteristics of the built environment. The paper serves to emphasize the investigation into the cultural identity of the physical and mental environment closely related to everyday life in a built environment, specialty and uncertainty of the cultural traits in a particular area and analyses of the interrelated social factors. The paper is established in the field research into a typical village in a particular area and comparative analysis of the general character and individuality of the cultural identity, resulting in a highly targeted concrete protection strategy. There are various factors that could have effects on the cultural identity of the physical and mental environment closely related to everyday life in a built environment, among which social factors are fairly dominant. The rural settlements embody the traditional cultural contexts in quite a few different aspects. Thus, it is of actual significance to formulate a corresponding inheriting strategy based on seeking for their influencing factors and embodiments.