Analysing the incompatible deformation and damage evolution around the tunnels in mixed strata is significant for evaluating the tunnel stability, as well as the interaction between the support system and the surrounding rock mass. To investigate this issue, confined compression tests were conducted on upper-soft and lower-hard strata specimens containing a circular hole using a rock testing system, the physical mechanical properties were then investigated. Then, the incompatible deformation and failure modes of the specimens were analysed based on the digital speckle correlation method (DSCM) and Acoustic Emission (AE) data. Finally, numerical simulations were conducted to explore the damage evolution of the mixed strata. The results indicate that at low inclination angles, the deformation and v-shaped notches inside the hole are controlled by the structure plane. Progressive spalling failure occurs at the sidewalls along the structure plane in soft rock. But the transmission of the loading force between the soft rock and hard rock are different in local. At high inclination angles, v-shaped notches are approximately perpendicular to the structure plane, and the soft and hard rock bear common loads. Incompatible deformation between the soft rock and hard rock controls the failure process. At inclination angles of 0°, 30° and 90°, incompatible deformations are closely related to rock damage. At 60°, incompatible deformations and rock damage are discordant due that the soft rock and hard rock alternately bears the major loads during the failure process. The failure trend and modes of the numerical results agree very well with those observed in the experimental results. As the inclination angles increase, the proportion of the shear or tensile damage exhibits a nonlinear increase or decrease, suggesting that the inclination angle of mixed strata may promote shear damage and restrain tensile damage.