Deterioration of concrete and composite structures due to the corrosion of embedded steel components (rebar, structural steel components, and steel fiber, etc.) is a self-accelerating process involving multiple chemophysical processes that occur concurrently in the heterogeneous structure of concrete. The multiple-inclusion matrix of concrete and the multi-chemophysics nature of steel corrosion synergistically challenge an accurate analysis and evaluation of the deterioration process using homogeneity-based continuum mechanics. This study presents a three-dimensional micromechanical model developed for quantifying the continuous deterioration of concrete by steel corrosion. Continuous damage theory of solid-state materials was applied to a steel-concrete sample that consists of mortar, aggregate, and steel phases as were reconstructed from high-resolution X-ray CT images. With due consideration of the variations in environmental temperature and moisture, the complex chemophysical processes involved in corrosion-induced deterioration of concrete were solved concurrently using finite element analysis. Results of the study indicate that capillary suction in a variably saturated concrete plays an important role in steel corrosion and that removal of chloride by an externally applied electrical field can effectively mitigate steel corrosion and the incurred concrete deterioration.