The Ordos Basin is the largest petroliferous basin in China, where the Chang 7 Member shale serves as the major source rock in the basin, with an area of more than 100,000 km². So far, sedimentary and geochemical characterizations have rarely been conducted on the shale in shallow (< 1000 m) areas in the southeastern part of the basin, but such characterizations can help identify the genesis of organic-rich shale and promote the prediction and recovery of shale oil. In this paper, several outcrop sections of the Chang 7 Member in the Tongchuan area were observed and sampled, and sedimentary and geochemical characterizations were conducted for the well-outcropped YSC section. The study results show that the Chang 7 Member shale is widely distributed laterally with variable thickness. The organic-rich shale is 7–25 m thick in total and exhibits obvious horizontal variation in mineral composition. In the eastern sections, the shale contains organic matter of Type II₂– III and is low in thermal maturity, with high clay mineral content, low K-feldspar content, and no pyrite. In the western sections, the shale contains Type II₁ organic matter and is low in thermal maturity, with high clay mineral, K-feldspar, and pyrite contents. The YSC section reveals three obvious intervals in vertical mineral composition and organic abundance. The Chang 7 Member organic-rich shale (TOC > 10%) contains mainly sapropelite and liptinite, with Type II kerogen. It is generally characterized by a hydrocarbon potential of more than 70 mg/g, low maturity, and shallow–semideep lacustrine facies. In the western sections, the shale, still in a low maturity stage, has a higher hydrocarbon potential and is optional for shale oil recovery. However, the Chang 7 Member shale in the study area is highly heterogeneous and its shale oil recovery is practical only in the organic-rich intervals.