The bypass valve of a positive displacement motor is a key component for regulating the bottom hole pressure and ensuring the normal circulation of drilling fluid during the drilling process. Severe erosion damage to the bypass valve significantly affects the service life of the positive displacement motor, yet there is currently a lack of related research. In this research, the flow characteristics of drilling fluid inside the valve core were analyzed through flow field simulation, and the main factors influencing erosion damage to the valve core were investigated. The results indicate that the side holes and flow channel structure of the valve core are the main causes of erosion. Based on this, two optimization schemes are proposed, namely, reducing the number of bypass side holes to 4 and optimizing the flow channel cone angle to 45°. The simulation results show that the erosion rate of the optimized valve core is significantly reduced, and the service life is effectively improved. Finally, a valve core life prediction model is established using a back propagation (BP) neural network to evaluate the optimization effect. The results show that the applicable flow range and maximum service life of the optimized valve core are increased by approximately 60% and 75.4%, respectively, validating the effectiveness of the optimization scheme.