Concrete shrinkage is significantly influenced by the restraint level, and cracking often occurs under specific restraint conditions, thereby adversely affecting structural performance. Investigating the effect of restraint on shrinkage cracking is of great significance for enhancing early-age durability and ensuring structural safety. In this study, four distinct restraint levels (0%, 35%, 55%, and 75%) were established by varying the thickness of the inner steel ring. The influence of varying degrees of restraint on the shrinkage behavior was investigated, with digital image correlation (DIC) and internal strain gauge measurement employed to observe the strain and predict the risk of cracking. As the degree of restraint increases, the inner steel ring inhibits the free radial shrinkage of concrete more significantly, thereby inducing greater tensile strains at both the outer circumferential surface and the interior. The surface strain accumulation far exceeds the interior response due to the drying gradient. During the first 60 h, the shrinkage strain measured by both methods exhibited the most rapid evolution, indicating a critical high-risk period for cracking. These results advance the understanding of restraint effects in concrete and comprehensively clarify the relationship between the degree of restraint and the shrinkage, which accurately captures the evolution of shrinkage, facilitates the transition from empirical to quantitative design for crack-resistant materials and supports their customized optimization under practical engineering loading conditions.