Red clay is susceptible to cracking in desiccating environments, with resulting crisscrossing cracks that compromise the soil structure and increase the likelihood of geological hazards. To investigate the dynamic mechanism of the initiation and propagation of soil desiccation cracks under natural hygrothermal conditions, a desiccation test was conducted on a red clay slurry using three-dimensional digital image correlation (3D DIC) technology. The evolution behaviour of desiccation cracks was analysed, and the dynamic relationships between moisture content, displacement field, strain field, and soil desiccation cracking were explored. The test results showed that the Atterberg limits of red clay are correlated with desiccation cracking. Cracks tend to initiate in areas where tensile strain is concentrated or significant displacement differences exist. Following crack initiation, the surrounding strain and displacement fields redistribute, influencing the propagation direction, development rate, and morphology of subsequent cracks nearby. Additionally, the relative displacement and strain at the edges of cracks are related to the crack propagation direction. Earlier crack initiation usually corresponds to a larger relative displacement and strain at the crack edges, while the displacement and strain at the soil clod centre are typically smaller than those at the crack edges. DIC technology can quickly and accurately obtain dynamic information about displacement and strain fields, providing feasible technical support for analysing the dynamic mechanism behind soil desiccation cracking. It has potential value in engineering hazard prevention and sustainable development.