Cutting force is one of the most basic signals that can reflect the information of the cutting process, so it is very necessary to study the strain elastic element of strain gauge wireless rotating dynamometers. This paper proposes a strain elastic element with a double-layer cross floating beam that can be applied to the strain gauge wireless rotating dynamometer, which can simultaneously obtain the four-component cutting force/torque information of FX, FY, FZ, and MZ. Based on the proposed strain elastic element, a compact strain gauge wireless rotating dynamometer is designed, which is composed of a tool holder, upper connection flange, strain elastic element, lower connection flange, tool base, and data acquisition and wireless transmission system. The static model of the double-layer cross floating beam on the strain elastic element is established by the segmented rigid body method, and the relationships between the material, force, structural parameters, and the strain and deformation of the floating beam are obtained. The static model is consistent with the finite element solution, which proves the rationality of the static model. Based on the established static model, the sequential quadratic programming algorithm is used to optimize the structural parameters of the double-layer cross floating beam to maximize the sensitivity of the floating beam. The overall structure of the strain elastic element is analyzed by finite element software, and the strain of the structure under simulation conditions is obtained, which provides a reference for subsequent calibration tests and circuit design. The calibration matrix and dynamic performance of the strain elastic element are obtained by the static calibration test, dynamic calibration test, and cutting test. The results show that the proposed strain elastic element has high sensitivity and low cross-sensitivity error, and can be applied to the strain gauge wireless rotating dynamometer to measure medium- and low-speed cutting forces.