Metro shield tunnels under the lateral relaxation of soil (LRS) are susceptible to significant lateral deformations, which jeopardizes the structural safety and waterproofing. However, deformation control standards for such situations have not been clearly defined. Therefore, based on a specific case, a model test is conducted to realize the LRS of a shield tunnel in a sandy stratum to reveal its effect on segment liners. Subsequently, a deformation control criterion is established. The LRS is simulated by linearly reducing the loads applied to the lateral sides of the segment structure. During lateral unloading, the lateral earth pressure coefficient on the segment decreases almost exponentially, and the structural deformation is characterized by horizontal expansion at the arch haunches and vertical shrinkage at the arch vault and arch bottom. Based on the mechanical pattern of the segment structure and the acoustic emission, the deformation response of a segment can be classified into three stages: elastic and quasi-elastic, damage, and rapid deformation development. For a shield tunnel with a diameter of approximately 6 m and under the lateral relaxation of sandy soil, when the ellipticity of the segment is less than 2.71%, reinforcement measures are not required. However, the segment deformation must be controlled when the ellipticity is 2.71% to 3.12%; in this regard, an ellipticity of 3% can be used as a benchmark in similar engineering projects.