PdNiCuP bulk metallic glass (BMG) is widely used in industrial fields due to its excellent oxidation resistance, corrosion resistance, and thermal stability. However, the lack of research on the machinability and cutting performance of BMG using single-point diamond turning (SPDT) limits its application for engineering manufacturing. In the present research, a series of turning experiments were carried out under different cutting parameters, and the machinability reflected by the quality of machined surface, chip morphology, and tool wear were analyzed. Based on the oxidation phenomenon of the machined surface, a molecular dynamics (MD) simulation was conducted to study the mechanism and suppression of the machined surface oxidation during the cutting. The results show that: (1) The Pd-based BMG had good machinability, where the machined surface roughness could go down to 3 nm; (2) irregular micro/nanostructures were found along the tool path on the outer circular region of the machined surface, which greatly affected the surface roughness; and (3) the cutting heat softened the workpiece material and flattened the tool marks under surface tension, which improved the surface quality. This research provides important theoretical and technical support for the application of BMG in optical mold manufacturing.