Abstract: Carbon can change the phase components of low-density steels and influence the mechanical properties. In this study, a new method to control the carbon content and avoid the formation of δ-ferrite by decarburization treatment was proposed. The microstructural changes and mechanical characteristics with carbon content induced by decarburization were systematically examined. Crussard–Jaoul (C–J) analysis was employed to examine the work hardening characteristics during the tensile test. During decarburization by heat treatments, the carbon content within the austenite phase decreased, while Mn and Al were almost unchanged; this made the steel with full austenite transform into the austenite and ferrite dual phase. Meanwhile, (Ti,V)C carbides existed in both matrix phase and the mole fraction almost the same. In addition, the formation of other carbides restrained. Carbon loss induced a decrease in strength due to the weakening of the carbon solid solution. For the steel with the single austinite, the deformation mode of austenite was the dislocation planar glide, resulting in the formation of microbands. For the dual-phase steel, the deformation occurred by the dislocation planar glide of austenite first, with the increase in strain, the cross slip of ferrite took place, forming dislocation cells in ferrite. At the late stage of deformation, the work hardening of austinite increased rapidly, while that of ferrite increased slightly.