To identify the optimal deformation parameters for 316LN austenitic stainless steel, it is necessary to study the macroscopic deformation and the microstructural evolution behavior simultaneously in order to ascertain the relationship between the two. Isothermal uniaxial compression tests of 316LN were conducted over the temperature range of 950–1150 °C and for the strain rate range of 0.001–10 s−1 using a Gleeble-1500 thermal-mechanical simulator. The microstructural evolution during deformation processes was investigated by studying the constitutive law and dynamic recrystallization behaviors. Dynamic recrystallization volume fraction was introduced to reveal the power dissipation during the microstructural evolution. Processing maps were developed based on the effects of various temperatures, strain rates, and strains, which suggests that power dissipation efficiency increases gradually with increasing temperature and decreasing stain rate. Optimum regimes for the hot deformation of 316LN stainless steel were revealed on conventional hot processing maps and verified effectively through the examination of the microstructure. In addition, the regimes for defects of the product were also interpreted on the conventional hot processing maps. The developed power dissipation efficiency maps allow optimized processing routes to be selected, thus enabling industry producers to effectively control forming variables to enhance practical production process efficiency.