The transient electromagnetic method (TEM) is widely applied in coal hydrogeological exploration owing to its sensitivity to low-resistivity bodies. However, when a coal seam is buried deep, particularly if there are multiple electrical layers in the vertical direction of the overlying stratum, the results of the calculation using the late-channel empirical formula of the TEM may no longer reflect the actual situation. In this study, we evaluated the principle of the one-dimensional (1D) Occam algorithm and the steps for performing an inversion. We proposed various two-, three-, and four-layer electrical models for inversion using the 1D Occam algorithm. Our results are consistent with the electrical distribution of the models, thus indicating the effectiveness of the algorithm. A test project of large-depth transient electromagnetic exploration in the Datong Coalfield in Shanxi, China, was selected for experimental verification. The 1D Occam inversion was used to successfully identify various electrical strata overlying the coal seam.