Low-temperature plasma ablation has been recently used for minimally invasive surgeries. However, more research is still needed on its generation process during tissue ablation and the underlying mechanism of tissue thermal damage. In this paper, high-speed camera footage, voltage-current signal collection, temperature analysis, and histological analysis were used to investigate the dynamic process of plasma tissue ablation and its thermal effect of dual-needle electrodes immersed in normal saline, which were driven by a high-frequency DC power supply with an output voltage ranging from 220V to 320V and a squire wave of 100kHz. Microbubbles occurred around the ground electrode and merged to form a vapor layer that could completely cover the ground electrode. Plasma capable of ablating tissue would occur in the vapor layer between the ground electrode and tissue. The effect of electrical parameters on plasma generation and its thermal effect are analyzed by statistical results. The experimental results indicated that the voltage applied to the electrodes significantly influenced both the generation and stability of plasma, as well as the heat generation and tissue damage around the electrodes. Furthermore, under the same voltage, the existence of biological tissue promotes the formation of a vapor layer around the electrode, thereby facilitating the generation and stability of plasma. Notably, the temperature rise around the ground electrode is much higher than that around the powered electrode. These results have direct application to the design of plasma tissue ablation systems, which could achieve tissue ablation effects with minimal thermal damage.