In this paper, a novel magnetorheological elastomer (MRE) isolator with a compression-torsion structure was developed to address existing challenges related to stiffness variation, damping force, and magnetic control range. Through performance testing of the vibration isolator prototype and theoretical analysis based on traditional magnetic dipole model of the MRE, the effects of applied magnetic field and compression displacement on the performance of the designed MRE isolator were systematically evaluated. The results showed that integrating the compression-torsion structure not only enhances the magneto-induced mechanical performance of the MRE but also improves the overall performance of the entire MRE isolator. The output force of the MRE isolator with a compression-torsion structure generally surpasses than that of the MRE isolator lacking this feature. The isolator’s stiffness can vary by up to 119% compared to its initial stiffness when a 2 A current is applied at a compression displacement of 0.5 mm. The proposed design, combining the compression-torsion structure and the MRE isolator, offers new insights for future research and applications in the realm of MRE isolators.