The maximum-hardened layer depth of 6.3 mm can be obtained from the laser-induction hybrid quenched process on 42CrMo steel. The results show that the specimen with the hardened layer depth of 6.3 mm has the lowest surface damage, shallowest surface wear scar depth, shortest cross-sectional crack length, and best rolling contact fatigue performance among three specimens. After laser-induction hybrid quenching, a certain residual compressive stress exists on the specimen surface, which can improve the rolling contact fatigue performance of the material. As the depth of the hardened layer increases, the fatigue failure type of laser-induction hybrid quenched 42CrMo steel under heavy load conditions changes from external cracking to internal cracking and spalling. The angle between the cracks and surface decreases from 90° to 15°. While the crack propagation angle reduces, the crack extension becomes smoother and the rolling wear and fatigue damage of the specimen are alleviated.