The influence of the loading rate on the mode I fracture property of rocks has been extensively investigated through experiments. However, the rate-effect of the dynamic mode II fracture has rarely been reported. This study employed the modified split Hopkinson pressure bar (SHPB) system to conduct a series of dynamic mode II fracture tests under a wide range of loading rates using the modified short-core-in-compression (SCC) method. The complete dynamic fracture processes of rock were observed using the three-dimensional high-speed digital image correlation (3D HS DIC) technique. The results reveal that the dynamic mode II fracture toughness increases with the loading rate at a power relationship. By virtue of the evolution of the surface principal strain and displacement, the dynamic fracture and damage process and the deformation characteristic of the SCC specimen were analyzed in detail. The dynamic fracture processes are divided into the elastic stage, plastic deformation stage, unstable crack growth stage, and post fracture stage. The crack propagation path of the SCC specimen was obtained under impact loading. It was found that new cracks first initiate from two notch tips and then propagate toward the central area in the expected shear fracture band (ESFB); the path is nearly independent of the loading rate. Additionally, the macro–micro fracture surface morphology of the SCC specimen was measured using a 3D optical scanner as well as scanning electron microscope (SEM) respectively. It was found that the roughness and curvature in the fracture surface created by shearing generally decrease as the loading rate increases, in accordance with fractal theory. The SEM result indicates intergranular fracture occurs more frequently on the shear fracture surface under static loading, while transgranular fracture is more common on the shear fracture surface at high loading rates.