Historic towns and traditional houses are an important part of architectural heritage. Heritage has a dual dimension of time and space, the time dimension reflects "historic", the space dimension expresses "regional", is the core value of urban cultural inheritance and sustainable development. At present, most studies on the preservation and renewal of ancient cities are mainly evaluated from the material space or historical dimension, weakening the value analysis from the full cycle time dimension, while the value evaluation system is mainly divided from the material space and weakens the time dimension. At the same time, most of the research focuses on the historical dimension of time, but the present use and future development are often ignored. Therefore, this paper analyzes the value dimension of the whole cycle, uses the literature analysis method to obtain the evaluation content and indicators, adopts the survey questionnaire and surveying and mapping method to evaluate the quantitative value, establishes the historical value evaluation system, and puts forward the classification principle of the historical value of traditional houses and the corresponding protection strategy. In addition, the paper analyzes the use status and space requirements of traditional courtyards, and summarizes the transformation strategies of use value and sustainable value. Finally, a whole-cycle value assessment framework of the ancient city and residential courtyards was formed, protection and renewal strategies were proposed, and case transformation was carried out to provide reference for historical and regional protection in the development of ancient city heritage.