Internal insulation plasters enable historic building renovation without altering the external appearance of the wall. However, the use of internal insulation must be verified case-bycase through dynamic hygrothermal simulation, and the influence of input parameters on the results is not always clear. This paper aims to (i) characterize a new lime-based insulating plaster with expanded recycled glass and aerogel through laboratory measurements, (ii) assess the damage criteria of the plaster under different boundary conditions through dynamic simulations, and (iii) identify the most impactful design conditions on the relative humidity behind insulation. This innovative plaster combines highly insulating properties (thermal conductivity of 0.0463 W/mK) with good capillary activity while also integrating recycled components without compromising performance. The relative humidity behind insulation remains below 95% in most simulated scenarios, with cases above this threshold found only in cold climates, particularly under high internal moisture loads. The parametric study shows that (i) in the analyzed stones, the thermal conductivity variation of the existing wall has a greater effect on the relative humidity behind insulation than the variation of the vapor resistance factor, (ii) the effect of insulation thickness on the relative humidity behind insulation depends on the difference in thermal resistance of the insulation and existing masonry layers, and (iii) internal moisture load and external climate directly impact the relative humidity behind insulation.