The SW Songliao Basin is an extremely significant part of the giant sandstone uranium metallogenic belt in northern China. The Yaojia Formation is the most significant ore-bearing layer in the region. However, the poorly constrained sedimentology of the Yaojia Formation has substantially hindered the understanding of the basin and the exploration of uranium deposits within it. To determine the sedimentology, provenance, and tectonic setting of the Yaojia Formation in the study area, we conducted petrography, whole-rock geochemical analysis, and electron probe research. Based on the results of the study, it appears that the Yaojia Formation sandstone is predominantly composed of lithic sandstone and feldspar lithic sandstone. Uranium exists in two forms: as independent minerals and as adsorption uranium. Pitchblende is the most common independent uranium mineral, with small amounts of coffinite also occurring. The ratios of Sr/Ba, V/(V+Ni), V/Cr, Ni/Co, and (Cu+Mo)/Zn of the samples indicate that the Yaojia Formation was deposited in a sub- to oxygen-rich freshwater environment with a moderately stratified bottom water body and smooth circulation. The geochemical characteristics of the Yaojia Formation sandstones imply that they are primarily derived from felsic igneous rocks in the upper continental crust in active continental margin and continental island arc environments. According to geochemistry and previous detrital zircon U-Pb chronology studies, the Mesozoic and Late Paleozoic felsic igneous rocks of the southern Great Xing'an Mountains are the principal sources of the Yaojia Formation in the SW Songliao Basin. Besides providing sediments for the study area, the uranium-rich felsic igneous rocks in the source areas also represent a long-term, stable, and ideal source of uranium, suggesting substantial potential for uranium exploration in the study area.