Ceramsite was prepared from sewage sludge biochar (SSB). The migration, speciation evolution, leaching toxicity, and potential environmental risk of heavy metals (HMs) in sludge biochar ceramsite (SBC) were investigated. The characteristics of the SBC met the requirements for Chinese lightweight aggregate standards (GB/T 1743.1-2010 and JT/T 770-2009) and the heavy metals (HMs: Cu, Zn, Cr, Pb, and Cd) were well immobilized in the SBC. The leaching percentages of the HMs in SBC were remarkably reduced, in particular after preheating at 400 °C and sintering at 1100 °C. The leaching percentages of Cu, Zn, Cr, Cd, and Pb decreased from (19.099, 18.009, 0.010, 3.952, and 0.379) % to (2.122, 4.102, 0.002, 1.738, and 0.323) %, respectively. The RAC values of the HMs in SBC were all lower than 1%, and the risk index (RI) suggested that the SBC had no HMs contamination and very low potential ecological risk when used in the environment. Furthermore, the HM-immobilization mechanisms were mainly related to the formation of new crystal phases (silicate and phosphate minerals) by incorporation of HMs, and to vitrification and encapsulation with low concentration of HMs on the surface. This work provides a useful method for large-scale reuse of SSB with very low leaching toxicity and low potential ecological risk of HMs.