Driver’s instinctive responses and skill-based behaviors enable them to react faster and better control their vehicle in dangerous situations. This study incorporated dynamic spatial information design (DSID) in an augmented reality head-up display (AR-HUD) under manual driving conditions. By integrating the skill, rule, and knowledge (SRK) taxonomy and situation awareness (SA) theory, our AR-HUD successfully evoked drivers’ instinctive responses and improved driving safety. First, we converted symbol and sign information processed at the knowledge-based and rule-based levels, respectively, into signal information processed at the skill-based level. Then we developed four AR-HUD interfaces with different dynamic designs for use in a hazardous scenario at an intersection. Finally, we investigated each design’s impact on drivers’ SA and driving performance. Experimental results demonstrated that our DSID enhanced drivers’ SA and accident-avoidance capabilities while reducing their cognitive workload. Among the four AR-HUD interfaces, the one that incorporated all three information elements under study (i.e., lateral warning, dynamic driving space, and speedometer) performed the best. This indicates that our proposed framework has potential applications in other similar dangerous driving scenarios, thus contributing to the development of safer and more efficient driving environments.