The rural revitalization strategy is an important policy focus and institutional basis for the current work related to agriculture, rural areas, and farmers in China, and also an important strategic idea for promoting rural modernization development in the future. However, the social-economic differences and natural geographical characteristics in China make it difficult to achieve synchronous development of different rural areas through the same specific path. Promoting rural modernization based on the unique attributes of rural areas is an effective measure to solve the current development challenges. The promotion of rural revitalization strategy by classification requires a clear distinction between the potential characteristics and classification basis of rural areas. Therefore, constructing scientific rural potential evaluation indicators and classification methods is of great significance. Based on existing literature on rural revitalization, the author of this article summarizes the research ideas and technical methods for evaluating the potential and types of rural development. Combined with field research, the Analytic Hierarchy Process is used to construct an evaluation index system for rural development potential. At the same time, based on the "three types of space" framework and the scoring characteristics of indicators, classification standards have been set in combination with the actual situation of rural areas. Furthermore, the author verifies the effectiveness of the evaluation framework by evaluating the development potential of 40 villages randomly selected from Jingyuan County, Ningxia. The research finds that the evaluation system of rural development potential includes seven dimensions, including traffic convenience, land suitability level, population and economic scale, facility carrying level, industrial scale, spatial expansion level, and various resource elements, including 19 sub indicators; According to the comprehensive evaluation score, the 40 case villages in Jingyuan County can be divided into four categories: immigrant relocation type, renovation optimization type, agglomeration development type, and urban transformation type, highlighting the main direction of rural development in different categories. Based on this, the author proposes specific paths and exploratory policy suggestions for institutional innovation of rural revitalization strategy from the perspective of land use system innovation. It is believed that in the process of promoting urban-rural integration through classification, the integration of rural governance system and industrial development should be actively promoted, and various elements of rural development should form agglomeration effects. At the same time, we should promote the optimization of the system of collective operating construction land, effectively play the important role of collective assets in promoting rural economy. In addition, we should also establish a platform for village transformation cooperation, and promote the formation and development of rural cooperative governance models through the construction of public forums. This article enriches the application of classification in promoting rural revitalization research, develops the typological classification basis and evaluation methods in current rural revitalization research, and effectively tests the reliability and scientificity of the evaluation method through the application of cases. At the same time, the overall characteristics of the development potential of rural villages in Jingyuan County and the reference development path are also clarified through evaluation, which has strong theoretical innovation and practicality.