Central place theory is one of the two theoretical cornerstones of geography, yet it cannot be connected with other spatial structure models, fails to provide definite time-space parameter conditions, lacks an evolutionary process model, and does not easily enable construction of a complete theoretical system of regional spatial structure. This paper gives an in-depth analysis of the process and mechanism for production and evolution of central places of different grades, and constructs an evolutionary model of the central place hierarchical system. The results of deduction, analysis and simulation show that production and evolution of the central place hierarchical system may be divided into five stages. These stages are the embryonic, formative, improvement, maturation, and advancement stages. Affected by spatial location and centricity, central places have obvious differences in scale and functional structures. There are great differences in the scale of same-grade central places. However, low-grade central places could have larger scales than high-grade central places, and the central places of a central location may form the agglomeration area of central places. Based on the hypothesis condition of an isotropic plain, the research shows that it is possible not only to form proportional functional structures of central places, but also to produce non-proportional scale structures of central places, and thus to complete the transformation from rationalistic deduction of spatial equilibrium mode to an explanation and demonstration of an unbalanced practical model.