[Objective] The factor calculation method of the Chinese soil loss equation (CSLE) were optimized to improve the simulation accuracy of CSLE for a hilly watershed of Shandong Province in order to provide technical support for dynamic monitoring of soil erosion factors in this region. [Methods] The Haoyu small watershed of Zibo City was taken as the research area. Factors in the CSLE model, such as vegetation cover, biological measures, and topographical features, were optimized by combining domestic high-resolution satellite data and UAV low-altitude remote sensing data. The superiority of the optimized soil erosion model factor was verified by comparing with national monitoring data. [Results] ① The factors of rainfall erosion and soil erodibility were consistent with the dynamic monitoring results of soil erosion in Shandong Province. The main soil conservation engineering measures were terraces, for which the factor value for ridge terraces was 0.084 and the factor value for stone ridge terraces was 0.121; the factor value for farming measures in the study area was 0.425. ② The similarity of the slope and length factor frequency curve was 0.91, which can be used for soil erosion calculation; the goodness of fit coefficient (R²) was 0.686 8 for the scale conversion model for vegetation coverage extraction, which can be used for the calculation of vegetation cover and biological measures. ③ The correlation coefficient between the soil erosion data calculated by the optimized model and the soil erosion data monitored by the state was 0.686 8. [Conclusion] The optimized method of factor extraction and calculation in the CSLE model could improve the simulation accuracy of the model, and the soil erosion modulus calculated after factor optimization is more in line with the actual local situation.