The conventional method cannot explicitly confirm the location and type of the energy loss, therefore this paper employs the entropy production theory to systematically analyze the category, magnitude and location of hydraulic loss under different blade thickness distribution. Based on the analysis, the turbulent entropy and viscosity entropy produced by the separation of boundary layer at the trialing edge are major factors leading to the hydraulic loss. In addition, the separation of the boundary layer can not only cause the energy loss, but also block the passage of the impeller and reduce the expelling coefficient of the blade. Therefore, the hydraulic performance of the blades with increment thickness distribution is obviously better than the decrement one. Further, the flow rate has different influence on the three types of entropy production. Meanwhile, the pressure pulsation on the working surface was investigated. It was concluded that with flow rates increasing, the amplitude of pressure pulsation firstly decreases and then smoothly improves, and reaches the minimum under design flow rate. Finally, the optimal blade was obtained, and the relevant hydraulic performance test was performed to benchmark the simulation result. This research can provide the theoretical reference for designing the reasonable thickness distribution of the blades.