This paper refines an optimized array lateral logging tool designed for small boreholes, leveraging existing technologies. The tool features four investigation depth curves, and resistivity response curves are derived through finite element model simulations considering variables such as borehole size, mud characteristics, invasion zone features, resistive annuli, formation rock properties, and formation resistivity anisotropy. The findings included the following: (1) Increasing the wellbore diameter uniformly decreased resistivity across all four investigation depths, positively correlating with borehole size. When mud resistivity (Rm) exceeded formation resistivity (Rt), resistivity curves became distorted. (2) For high- and low-invasion models, the ratio of the deepest to the shallowest investigation depth curves ranged from 1 to 8 and 0.6 to 0.9, respectively, with maximum separation at an invasion depth of 0.5–0.8 m. (3) Under invasion conditions with annuli, an invasion zone depth and annulus width around 0.4 m yield well separated the resistivity curves for all depths. Low- and high-resistivity annuli of 2 m and 0.7 m, respectively, can cause curve intersections. (4) When the formation thickness exceeded 0.2 m, the tool accurately reflected formation resistivity variations and demonstrated effective layer identification in multi-layer conditions. (5) In anisotropic formations, resistivity was negatively correlated with the anisotropy coefficient (λ) as it changed from 2 to 4. The instrument can be fully utilized in the exploration of thin interlayers in oil and gas, significantly enhancing the accuracy of resource identification and extraction technologies.