Disclosed are a screw drill bypass valve with a large displacement diversion function and a method of using same. The screw drill bypass valve comprises a valve body, the valve body is internally provided with a first-level valve core and a second-level valve core, a first-level spring is arranged between the first-level valve core and the second-level valve core, a second-level spring is arranged between the second-level valve core and a valve seat, and a rigidity of the second-level spring is greater than that of the first-level spring; the first-level valve core is provided with an inner bypass hole, the valve body is provided with an outer bypass hole, and the inner bypass hole is conducted with the outer bypass hole when a flowing pressure within a fluid channel of drilling fluid disappears; the second-level valve core is provided with an inner diversion hole, the valve body is provided with an outer diversion hole, and the inner diversion hole is conducted with the outer diversion hole when the flowing pressure within the fluid channel of the drilling fluid increases to a threshold. The screw drill is allowed to be applied to large displacement circulation and drilling to facilitate improving a rock carrying efficiency of a large-size well section, a high-angle well section and a horizontal section, reduce a drilling risk, and increase a drilling speed.