Magnetorheological (MR) devices have been investigated intensively nowadays, of which MR valve is an important and hot application with the challenges of acquiring high pressure drop within compact configurations. Hence, a novel squeeze mode based MR valve (SMRV) is proposed in this paper, with highlights of high pressure drop and low power consumption within a compact and transplantable structure. SMRV’s characteristics are studied and its core parts are designed including the initial gaps, magnetic circuit and returning spring. The uniform-saturation magnetic intensity principle is proposed and a co-simulation optimal platform is developed to optimize magnetic intensity of the SMRV dimensions. Then, a prototype is developed and its steady-state performance is evaluated. The test results demonstrate that a pressure drop of 10.8 MPa and a controllable ratio of 5 at 1.0 A applied current are achieved within a transplantable configuration. Meanwhile, SMRV only consumes 1/400 W control power to dissipate 1 W fluid power and its power–volume consumption rate, PC · V/PD, is 3.3 × 102 mm3, which has a brilliant application prospect in hydraulic or mechatronic systems.