After the Fukushima nuclear accident, the development of new accident-tolerant fuel cladding materials has become a research hotspot around the world. Due to its outstanding corrosion resistance, radiation resistance, and creep properties at elevated temperatures, the oxide dispersion strengthened (ODS) fecral alloy, as one of the most promising candidate materials for accident-tolerant fuel cladding, has been extensively studied during the past decade. Recent research on chemical composition design as well as its effects on the microstructure and mechanical properties has been reviewed in this paper. In particular, the reasonable/optimized content of Cr is explained from the aspects of oxidation resistance, radiation resistance, and thermal stability. The essential role of the Al element in oxidation resistance, high-temperature stability, and workability was reviewed in detail. The roles of oxide-forming elements, i.e., Y (Y2O3), Ti, and Zr, and the solid solution strengthening element, i.e., W, were discussed. Additionally, their reasonable contents were summarized. Typical types of oxide, i.e., Y-Ti-O, Y-Al-O, and Y-Zr-O, and their formation mechanisms were also discussed in this paper. All aspects mentioned above provide an important reference for understanding the effects of composition design parameters on the properties of nuclear-level ODS FeCrAl alloy.