The dynamic evolution of the overburden “three-zone” structure—namely the caved zone, fractured zone, and continuous deformation zone—plays a critical role in governing strata movement, groundwater migration, and mining safety during coal seam extraction. Accurately capturing the initiation, propagation, and coalescence of mining-induced fractures remains challenging for conventional continuum-based numerical methods. In this study, a peridynamic modeling framework is employed to simulate the dynamic development of the overburden three-zone structure during longwall coal mining. By leveraging the intrinsic nonlocal formulation of peridynamics, the proposed approach naturally describes crack initiation and growth without additional fracture criteria, enabling a unified representation of overburden deformation and failure processes. The coal seam extraction process is explicitly modeled through progressive material removal, allowing the spatiotemporal evolution of displacement, damage, and fracture networks in the overlying strata to be analyzed. Simulation results reveal the staged development characteristics of the caved and fractured zones, as well as the gradual transition to continuous deformation in higher strata. The influence of mining advance distance on three-zone height, fracture connectivity, and damage accumulation is systematically investigated. Comparisons with empirical three-zone theories and field observations demonstrate good agreement, validating the effectiveness of the proposed method. This study highlights the potential of peridynamic simulation as a robust tool for analyzing mining-induced overburden failure mechanisms and for improving the assessment of water inrush and strata stability risks in underground coal mining.