In the context of reinforced concrete (RC) arch bridges, while the incorporation of full sections of steel fibers can enhance the bridge’s toughness, cracking resilience, and bearing capacity, achieving an optimal balance between structural performance and economic viability in this manner remains challenging. This article introduces a novel computational approach—the distributed steel fiber concrete (LSFRC) arch—which considers the spatial distribution of damage in RC arches. The static performance of SFRC elements and LSFRC beams was compared and analyzed using the concrete plastic damage model (CDP) in ABAQUS software. This study validated the rationality of the model and investigated the impact of varying steel fiber volume ratios and steel fiber layer heights on the damage evolution of LSFRC arches. The results of this study demonstrate that the cracking load and bearing capacity of an RC arch can be effectively enhanced through the addition of steel fibers to a local area under static loading. Furthermore, the deflection and damage to the arch waist and arch roof can be significantly reduced. Furthermore, the incorporation of steel fibers at an increased volume rate and at a greater height within the doped section can effectively slow the rate of damage evolution within the section. This results in the inhibition of crack extensions and in an improvement in the ductility and reliability of the damage stage. The LSFRC arches offer superior economic and practical advantages over their full cross-section doped steel fiber (FRC) counterparts. This study offers novel insights and methodological guidance for the design and implementation of concrete arch bridges.