The study on the deformation distribution and crack propagation of concrete under axial compression was conducted by the digital image correlation (DIC) method. The main parameter in this test is the water-cement ( / ) ratio. The novel analysis process and numerical program for DIC method were established. The displacements and strains of coarse aggregate, and cement mortar and interface transition zone (ITZ) were obtained and verified by experimental results. It was found that the axial displacement distributed non-uniformly during the loading stage, and the axial displacements of ITZs and cement mortar were larger than that of coarse aggregates before the occurrence of macro-cracks. The effect of / on the horizontal displacement was not obvious. Test results also showed that the transverse and shear deformation concentration areas (DCAs) were formed when stress reached 30%–40% of the peak stress. The transverse and shear DCAs crossed the cement mortar, and ITZs and coarse aggregates. However, the axial DCA mainly surrounded the coarse aggregate. Generally, the higher / was, the more size and number of DCAs were. The crack propagations of specimens varied with the variation of / . The micro-crack of concrete mainly initiated in the ITZs, irrespective of the / . The number and distribution range of cracks in concrete with high / were larger than those of cracks in specimen adopting low / . However, the value and width of cracks in high / specimen were relatively small. The / had an obvious effect on the characteristics of concrete deterioration. Finally, the characteristics of crack was also evaluated by comparing the calculated results.