The suitability of underground space development is scientifically and reasonably evaluated, which is a prerequisite for avoiding wastage of underground resources and ensuring their healthy and sustainable development. Based on topography and geomorphology, engineering geology, hydrogeology, adverse geological effects and construction status, the suitability evaluation index system of underground space development was constructed. The influence scope of shield tunnel construction was determined through numerical simulation, and the evaluation index of construction status was quantified. The analytic hierarchy method and the entropy weight method were used to calculate the subjective and objective weight of the evaluation index, and the combination weight was determined by game theory. On this basis, the comprehensive index method was used to evaluate the suitability of the underground space development of Wenyi Road in Hangzhou. Through the comparative analysis of the evaluation results and the examples of underground engineering of College Road, the reliability of the evaluation model was verified. The guidance and reference are provided for the development planning of underground space.