Surface monitoring of artificial canals is essential to ensure safe operation. Traditional geodetic tools are commonly employed to monitor the canal of China’s South-to-North Water Diversion Project (SNWDP), which is time-consuming and high-cost. The advanced satellite Synthetic Aperture Radar Interferometry (InSAR) is an effective tool to detect subtle surface deformation, while its application for monitoring canals is short of fine deformation interpretation on a structure scale. In this study, we applied multiple SAR satellites to monitor a typical canal of the Middle Route of the SNWD Project (MRP), the Changge Canal, by extracting the historical deformation, inverting two-dimensional (2D) deformation, and analyzing distortions. The result suggests that the focused canal section is experiencing continuous deformation caused by near coal mining activity. Its vertical and horizontal distortions both reach ±1.5 mm/100 m. The InSAR applicability, including visibility and sensitivity, is applied to the structure-level interpretation of deformation. The InSAR MPs distribution highly depends on canal structures' aspect and surface coverings. The canal structures with high coherence and lower R-Index (i.e., foreshortening) are favorable for detecting InSAR MPs; meanwhile, a few MPs are detected for the structures with high coherence but high R-index. For the sensitivity of the deformation vector along the downslope, its dependency on the aspect opposes InSAR MPs distribution. The structure-level interpretation considering InSAR applicability helps deploy targeted maintenance and analyze deformation mechanisms. The procedure of fine InSAR monitoring applies to similar water diversion projects.