The experimental study is made to analyze the fracture and non-linear fracture behavior of concrete cast from the processed coarse aggregates from concrete demolished aggregates. Fracture tests are carried out for recycled concrete coarse aggregate concrete (RAC) and conventional aggregate concrete (CAC) with a 0.45 water–cement ratio for pre-cracked (notch/depth −0.2 and span-to-depth ratio of 2.5) samples tested at a 0.002 mm/s CMOD control rate for different sizes of specimens with a constant span-to-depth ratio and cured for 28 days in water curing. The non-contact measurement technique Digital Image Correlation (DIC) is used to analyze the fracture properties. RAC crack propagation criteria differ from CAC crack propagation criteria. The crack is not only initiated in the ITZ but also arises from the weak aggregate interface. The crack propagation in RAC is also due to the failure of aggregates. The non-linear fracture properties were obtained through the peak load that arrived through the experiment and also through post-processing images captured during the test. The concrete crack propagation factors and patterns are analyzed using the fracture process zone (FPZ) and effective crack length through DIC for different stages of crack propagation. The FPZ properties in DIC were identified by considering the zone of strain concentration across the notch by analyzing the images during the identification of FPZ to till well-established FPZ formation (strain distribution diagrams). By using the relative coordinate method across the notch for the well-established FPZ image during the loading process, through the observance of the deflection and extension of coordinates across the notch. The strain densification ahead of the crack tip is more in RAC than CAC; it might be due to the activity of the pre-weak interface in aggregates as a micro-crack, as evident in the increase in the width of FPZ (up to 0.18 compared to RAC). DIC allows understanding the non-linear behavior of RAC, such as critical crack tip location and path. Non-linear fracture properties are nearly correlated with the excremental fracture energy arrived at through SEM. The fracture process zone is well defined in RAC with an increased length of 1.28 mm compared to the CAC.