The 21-year-old worker, who was an Afghanistani national, was using a Bobcat digger at the site in Lower Hollin Bank Street when it crashed on Sunday.
He suffered serious head injuries.
Police told This is Lancashire he had been living in Blackburn, but had no family in this country.
The waste management and recycling company, where the accident took place, was cordoned off by police, pending a full inquiry which started yesterday.
A Bobcat digger could be seen in the yard in front of the unit, part of a larger group of four businesses at the site.
Inspector Mick Johnson said: “There was a fatal industrial accident at a unit in Lower Hollin Bank Street.
“Police have attended the unit and the Health and Safety Executive will be conducting a joint investigation with CID officers.”
Fire and rescue officers from Blackburn were also called to the scene as a precaution, but were not required.
A spokeswoman from the Health and Safety Executive confirmed it was aware of the incident and had begun making preliminary inquiries.