Aiming at the crucial engineering challenge of the ambiguous excavation deformation mechanism of hard and brittle surrounding rock under high geos-tress conditions, with the right bank diversion tunnel at the dam site of the hydropower station as the research object, the deformation and failure characteristics of the surrounding rock and their formation mechanisms during the layered excavation of the diversion tunnel were investigated. The research findings show: (1) The main factors influencing the deformation of the diversion tunnel’s surrounding rock are the high ground stress environment, the degree of fracture development in the rock mass, and the effectiveness of the support system. (2) Following the excavation of the first layer, extensive shallow damage predominates, with damaged blocks primarily exhibiting sheet-like and plate-like forms. After excavating the second and third layers, there is a significant reduction in confining pressure in this region, leading to a rapid deterioration in the extent of damage. (3) Layered excavation induces ‘time-dependent’ variations in the yield characteristics of the surrounding rock, while simultaneously being influenced by the location and extent of fracture development. The study results are expected to provide a theoretical basis for the excavation of underground caverns under high ground stress.