It is of great significance to reveal deformation behavior coupling with both the high-temperature effect and microstructure for the in-service welding instability zone. In the present paper, microstructure evolution and high-temperature deformation behavior at the representative temperatures 900 °C and 1100 °C inside the in-service welding instability zone were investigated based on the in-situ high-temperature laser scanning confocal microscope (LSCM). The results indicated that a sufficient condition of carbide precipitation is to hold it at 900 °C for a certain time. However, the phenomenon of carbide precipitation failed to be presented during continuous heating to 1150 °C. Although the slip and twining deformation occurred inside austenite grain, the fracture mechanism gave priority to intergranular cracking, which could be ascribed to the carbides with higher hardness and the grain boundary weakening caused by the temperature effect.