In the field of water injection wells within oilfields, comprehending the intricate mechanics of water channeling and the resulting rock damage on the external cemented surface holds paramount significance for the efficient management of reservoirs. This paper presents a comprehensive study aimed at illuminating the complex nature of rock damage on the external cemented surface of casings and deciphering the underlying mechanisms that underpin water channeling occurrences. To this end, a robust constitutive model is established and refined to capture the multifaceted interactions inherent in rock damage on the cemented surface. This model introduces a modified bonding force approach to enhance shear stress precision and thoughtfully accounts for the profound effects of elastic–plastic behavior, cracking damage, and elastic-cracking coupling damage on damage progression. Subsequently, the refined model is employed to investigate rock damage on the external cemented surface of water injection wells, encompassing variations in confining pressure, rock width on the cemented surface, and the ratio of Young’s modulus between the cement sheath and the rock. The research findings emphasize the interplay between cracking and elastic damage as the catalyst for rock damage on the cemented surface. Impressively, the accuracy of the refined constitutive model for the cemented surface has advanced by over 5% compared to prior studies. The manipulation of confining pressure and the Young’s modulus ratio enhances peak fracture water pressure, signifying substantive strides in comprehending damage propagation mechanics. Furthermore, the study discerns the negligible influence of rock width on the cemented surface regarding damage patterns. These findings have important implications for the effective management of water injection wells, providing insights for the restoration of water channeling wells and proactive measures against water channeling phenomena. They also contribute to the refinement of well cementing practices and the proficient management of water channeling and water flooding in oilfields. The research findings have profound implications for the domain of water injection wells, offering novel insights into the restoration of water channeling wells and the implementation of preemptive measures against water channeling phenomena. These findings hold the potential to guide the refinement of well cementing practices and the adept management of water channeling and water flooding wells within the studied oilfield.