To study the mechanisms of rock breaking and cavity formation by hole-inner layered charge blasting， the influence of hole-inner layered charges on the rock breaking and cavity formation of deep hole cutting was first investigated through theoretical analysis and model experiments. Then， numerical simulations were carried out using SPH-FEM algorithm to reveal the processes of rock breaking and throwing as well as the mechanisms of rock breaking and cavity formation. Finally， field tests were conducted to explore its application effects. The results show that the hole-inner layered charge could realize the uniform distribution and release of explosive energy， which could eliminate the large rock in the upper cavity and weaken the constraint effect of the surrounding rock in the bottom cavity， so as to achieve the cavity formation efficiency of 96.5%. The numerical simulation realized the visualization of the blasting process. The simulation results confirmed the beneficial effect of uniform energy distribution and sequential release on rock breaking and cavity formation. Compared with traditional cutting blasting technique， using the hole-inner layered charge cutting technique， cycle footage and hole utilization were increased by 0.45 m and 17.3%， respectively， the specific charge and detonator were reduced by 0.42 kg·m^-3 and 0.21 PCS·m^-3， respectively. The results demonstrated the applicability of hole-inner layered charge cutting technique in deep hole blasting.