Traditional village is a living and three-dimensional treasure house of human settlement environments, and it is the design source of ideal homes. In the special period of social transformation and the critical stage of building a beautiful village in an all-round way, we hope through the discussion about human settlement environments of Luxiang Ancient Village to analyze the life concept of traditional Chinese human settlement environment culture and the living wisdom of the Chinese ancient nation, provide exploration methods and thinking ways for empowering rural revitalization, promoting homestead construction, and continuing the cultural vein of our nation. Taking Luxiang Ancient Village as the object, this paper aims to explore the life inhabitation model for living settlement environment, analyze the traditional village development due to geographical adaptation and human relationship, and describe the growth of the traditional village. After description the basic history of traditional villages, this paper understands the living intelligent from two aspects, that is, site selection and construction of the traditional village, to recognize the effectiveness of traditional village on their life. Finally, this paper analyzes the dual interaction between the human settlement environments and people, and describes the ideal human life as the projection expression and interactive impact of human settlement environments. Finally, this paper comes to a life habitat model of co-prosperity in which the traditional village human settlement environments and the occupants complement each other.