Potassium dihydrogen phosphate (KDP) crystals, vital for high-power laser systems, pose significant machining challenges due to their brittleness, low hardness, and hygroscopic properties. Achieving crack-free, high-precision surfaces is essential but complex. Single-point diamond fly-cutting (SPDF) is the primary method, yet it exposes tools to high mechanical stress and heat, accelerating wear. In dry cutting, worn tools develop adhesive layers that detach, causing scratches and degrading surface quality. Traditional wet cutting improves surface finish but leaves residual fluids that contaminate the surface with metal ions, leading to optical degradation and fogging. To address these issues, this study explores mixed-fat-based minimum quantity lubrication (MQL) as a sustainable alternative, comparing two lubricants: biodegradable-base mixed ester lubrication (BBMEL) and hydrocarbon-based synthetic lubricant (HCBSL). A comprehensive evaluation method was developed to analyze surface roughness, tool wear, and subsurface damage under dry cutting, MQL-BBMEL, and MQL-HCBSL conditions. Experimental results show that MQL-BBMEL significantly enhances machining performance, reducing average surface roughness by 27.77% (Sa) and 44.77% (Sq) and decreasing tool wear by 25.16% compared to dry cutting, outperforming MQL-HCBSL. This improvement is attributed to BBMEL's lower viscosity and higher proportion of polar functional groups, which form stable lubricating films, minimizing friction and thermal effects. Structural analyses confirm that MQL-BBMEL prevents KDP crystal deliquescence and surface fogging. These findings establish MQL-BBMEL as an eco-friendly, high-performance solution for machining brittle optical materials, offering significant advancements in precision machining for high-power laser systems.