This paper proposes a stage flow parameter analytical model for rapid evaluation of a counter-rotating compressor’s performance for design optimization and its application in the design of a transonic counter-rotating fan. In the first part, the velocity diagram method, considering the influence of flow-path geometry variation for enhancing the accuracy, is used to correlate the aerodynamic parameter between the inlet guide vane (IGV), the upstream rotor (R1), and the downstream CR rotor (R2). A profile loss correlation based on Lieblein’s diffusion factor and a shock loss model from a high-speed fan database are incorporated for predicting the rotor efficiency. In the second part, to verify its effectiveness, the analytical model is used for aiding in the aerodynamic design of a transonic CR fan for indicating the optimized combination of design parameters for good efficiency and a high pressure ratio. According to the analytical model and the simulation results, the final selected samples have higher efficiency, with a moderate pressure ratio (0.949/2.67, 0.890/2.99, and 0.841/2.99 for R = 0.1, 0.5, and 0.9, respectively). Finally, the aerodynamic characteristics of the designed transonic CR fan at a relative rotating speed of N = 1.05~0.8 are calculated by using the CFD software Numeca. Simulations indicate that the designed transonic CR fan has a pressure ratio of 2.76, with an efficiency of 0.8405 at the design point, and the efficiency is maintained above 0.821 with a stall margin of 13.3% for N=1.0. The maximum pressure ratio of this CR fan reaches 3.08 and 3.36 for N = 1.0 and 1.05, respectively. If used to provide thrust, calculations indicate that the thrust of this transonic CR fan is 71.8, 65.9, and 35.8 kN for N = 1.05, 1.0, and 0.8 at the near-choke point for the sea-level condition.