Er:CaF₂ crystals are crucial gain media for producing 3 μm mid-infrared (MIR) lasers pumped by 976 nm continuous-wave (CW) lasers owing to their low phonon energy and high conversion efficiency. This study investigated the damage characteristics and mechanism of Er:CaF₂ crystals irradiated with a 976 nm CW laser. The laser-induced damage threshold of Er:CaF₂ crystals with different Er³⁺ doping levels was tested; the damage morphology consists of a series of regular 70° cracks related to the angle of the crystal slip system on the surface. A finite-element model was used to calculate the temperature and stress fields of the crystals. The results indicated that the damage can be attributed to surface tensile stresses caused by the temperature gradient, and crystals with higher doping concentrations were more susceptible to damage owing to stronger light absorption. These findings provide valuable insights into the development of high-power MIR lasers.