The construction of mud-water shield tunnel in the fault fracture zone stratum is relatively complicated. To study the tunneling performance of shield, based on Changsha Metro Line 6 shield tunneling project, the numerical simulation of the excavation process is conducted to analyze the influence of tunneling construction parameters on the vertical subsidence and deformation of the ground. The vertical surface deformation diagram and settlement trough distribution curve show that with the increase of silo pressure, the settlement of soil in front of the tunneling face decreases, but the excessive pressure of mud silo can cause great disturbance to the excavated strata, resulting in the increase of settlement deformation as the shield machine continues to push forward. The increase of grouting pressure will enhance the reinforcement effect of mud on surrounding rocks, improve the overall stability of surrounding rocks and reduce the strata deformation. As the tunneling velocity rises, the disturbance degree of the stratum and the subsidence of the ground gradually increases. The optimized results of mud-water shield construction parameters in this study can provide technical guidance for analogous projects.