Several studies have demonstrated that laser-induced hard tissue ablation effects can be enhanced by applying an additional water-layer on tissue surface. However, the related mechanism has not yet been presented clearly. In this paper, the influence of static pressure on dynamic characteristics of cavitation induced by pulse laser in liquid and its effect on bovine shank bone ablation were investigated. The laser source is fiber-guided free-running Ho:YAG laser with wavelength of 2080 nm, pulse duration of 350 μs and energy of 1600 mJ. The tissue samples were immerged in pure water at different depths of 11, 16, 21, 26 and 31 mm. The working distance between the fiber tip and tissue surface was fixed at 1 mm for all studies. The dynamic interaction between laser, water and tissue were recorded by high-speed camera, and the morphological changes of bone tissue were assessed by stereomicroscope and OCT. The results showed that many times expansion and collapse of bubble were observed, more than four pulsation periods were accurately achieved with the most energy deposited in the first period and the bubble became more and more irregular in shape. The longitudinal length (7.49--6.74 mm) and transverse width (6.69--6.08 mm) of bubble were slowly decreased while volume (0.0586--0.0124 mm3) of ablation craters were drastically reduced, with static pressure increasing. The results also presented that the water-layer on hard-tissue surface can not only reduce thermal injury but also improve lubricity of craters, although the water-layer reduced ablation efficiency.