Design optimization of mechanical properties is one of the most challenging tasks in the design and development of new tool materials for diverse machining applications. Mechanical properties of tool material play a crucial role during the entire tool design and machining process. This paper attempts to solve the optimization problem of mechanical properties for Al2O3-based ceramic tool material in turning of ultra-high-strength steel 300M. First, a high-speed turning experiment was conducted to explore the effect of various mechanical properties of ceramic tool materials on tool life, and then an exponential model was built to decompose the tool life for obtaining the best comprehensive mechanical properties of ceramic tools. Second, analytic hierarchy process (AHP) method combined with Criteria Importance Through Intercriteria Correlation (CRITIC) method was used to optimize the mechanical properties of ceramic tool materials. The optimization results of hardness, fracture toughness, flexural strength, and Young’s modulus were 21.3 GPa, 8.9 MPa·m1/2, 898.6 MPa, and 473.5 GPa, respectively. Finally, under the guidance of optimization results, Al2O3/TiC/TiN ceramic tool (AT10N20) materials were fabricated to turning of ultra-high-strength steel 300M. The cutting performance and wear mechanisms of ceramic tool AT10N20 were investigated. The experimental results indicated that the design optimization method could be useful for designing and developing new tool materials in specific machining applications.