The hardened tool steel AISI O1 has increased strength, hardness, and wear resistance, which affects the complexity of the machining process. AISI O1 has also been classified as difficult to cut material hence optimum cutting parameters are required for the sustainable machining of the alloy. In this work, the effect of feed peer tooth (fz), cutting speed (vc), cutting of depth (ap) on surface roughness (Ra, Rt), cutting force (Fx, Fy), cutting power (Pc), machining cost (Ci), and carbon dioxide (Ene) were investigated during the slot milling process of AISI O1 hardened steel. A regression analysis was carried out on the obtained experimental results and the induction of nonlinear mathematical equations of surface roughness, cutting force, cutting power, and machining cost with a high coefficient of determination (R2 = 90.62–98.74%) were deduced. A sustainability assessment model is obtained for optimal and stable levels of design variables when slot milling AISI O1 tool steel. Stable indicators to ensure personal health and safety of operation, P1 values were set to “1” at a cutting speed of 20 m/min or 43.3 m/min and “2” at a cutting speed of 66.7 m/min or 90 m/min. It is revealed that for eco-benign machining of AISI O1, the optimum parameters of 0.01 mm/tooth, 20 m/min, and 0.1 mm should be adopted for feed rate, cutting speed, and depth of cut respectively.