The Closed-Loop Layout Problem (CLLP) is an NP-hard mixed optimization problem, in which an optimal placement order of facilities is found along adjustable rectangle loop with the objection of minimizing the total transport cost of material flow between facilities. In most of the existing methods, meta-heuristic algorithm was used to find the optimal order for the placement of facilities, and enumeration method was applied to find the optimal size of the rectangle loop, which causes extremely low efficiency. To solve this problem, a Hybrid Population-Based Incremental Learning (HPBIL) algorithm was proposed for solving CLLP. In the algorithm, the Discrete Population-Based Incremental Learning (DPBIL) operator and Continuous PBIL (CPBIL) operator were used separately to search the optimal placement order of facilities and the size of rectangle loop at the same time, which improved the efficiency of search. Furthermore, a local search algorithm was designed to optimize some good solutions in each iteration, enhancing the refinement ability. Simulation experiments were carried out on 13 CLLP instances. The results show that HPBIL algorithm finds the best new optimal layouts on 9 instances, and is significantly superior to the algorithms to be compared on the optimization ability for CLLP.