The grain-oriented silicon steels were subjected to gradient heat conduction during high-temperature annealing by using thermal insulation cotton. The macrostructures of samples subjected to circumferential gradient heat conduction showed a “petal-like” morphology with peripheral columnar grains and central equiaxed grains, while samples subjected to transverse gradient heat conduction showed a morphology with approximately 50% columnar grains and 50% equiaxed grains. The grain orientations, magnetic domains as well as magnetic properties in different regions were detected. Results showed that the magnetic induction intensity of cylindrical grains was better than that of equiaxed grains while the iron loss was worse, which indicated that a fast heating rate during high-temperature annealing was conducive to the accuracy of Goss grains. The magnetic domains in columnar grains were wider than the equiaxed grains, which resulted in poorer iron loss. A theory of the competitive growth among secondary Goss grains was proposed. Under the condition of gradient heat conduction, once the Goss grains with the fastest heat conduction grew up abnormally, they would compete with other Goss grains which were supposed to survive in traditional processes and swallow up them until adjacent to the secondary equiaxed grains which were later developed.