The demands for deep underground mining and constructions are boosting as the society and economy continue moving forward. Deep underground chambers function as primary elements in the deep underground mining and other subsurface facilities. Therefore, a rational design of such chambers plays a pivot role in construction safety and economic efficiency. The primary goal of this study is to reveal the relation between in-situ stress field and axes of elliptical cross-section of underground chamber. Based on rock deformation and damage, a numerical model is developed to define the heterogeneous damage evolution near the chamber. In the parametric study, we characterize the damage evolution in response of chamber cross-sectional shape, lateral stress coefficient and tectonic stress azimuth, and thus introduce the critical lateral stress coefficient to define the chamber stability. Furthermore, a case study of a -2000 m chamber in Sanshandao gold mine is conducted using the proposed model to optimize the shape design and location analysis of the underground mining chamber. The simulation outcomes show that the damaged area and stress concentration near the chamber is minimized when the axis ratio is equal to the lateral stress coefficient. The damaged area is determined by the in-situ stress configuration: a greater lateral stress coefficient sees pronounced increment in tension stress inside the roof and floor of the chamber, resulting in an exponential enlargement in the damaged area. Comparing to the shallow underground chamber, the deep one is more sensitive to the increase in lateral stress coefficient--The critical lateral stress coefficient is gradually decreased to 1 with the depth increasing. The larger horizontal tectonic stress in deep strata causes the damage accumulation occurring in roof and floor, encouraging rock outbursts in the damaged zones. Conclusively, to optimize the design and minimize the outburst hazard for deep underground chamber, the chamber cross-sectional shape, axes ratio and direction must reasonably reflect the in-situ stress field.