During the operation of the substation, the main reason for the heating of the switchgear is the eddy current loss. In the daily operation and maintenance of the substation and loss statistics, for some switchgears in the area of direct conductive equipment, there is an abnormal local overheating phenomenon. The main reason for this phenomenon is the eddy current loss in the substation, which seriously affects the safe operation of substation equipment due to the heating defect. This paper analyzes the local overheating problem in substation switchgear and proposes the distribution of eddy current loss and its influencing factors of optimization strategy from the aspect of loss source design. Based on the Maxwell equation, the loss calculation model is established. The optimization method of eddy current loss is comprehensively evaluated according to the distribution characteristics of eddy current loss. The temperature of the bushing surface under different voltage levels is measured, and the error between the calculated results and the measured results is within 2%. Therefore, within the allowable error range, the simulation results and the formula calculation results can fit the measured values well, which verifies the correctness of the established wall bushing heating simulation model and temperature calculation formula. The optimal solution is made to provide a reliable basis for the actual engineering construction. The electric field energy of the bushing is relatively evenly distributed under the actual operating conditions, and the insulating materials are fully utilized to ensure the reliability under high ambient temperature and high current operating conditions.