Effective utilization of small-diameter hardwood, including large-diameter branches, has become increasingly important for sustainability. These materials consist of small-diameter logs with irregular shapes; consequently, the timber products contain both sapwood and heartwood and frequently exhibit tension wood (TW). Therefore, the continuous variation from pith to bark, and from TW to opposite wood (OW) must be considered when using these logs for timber. However, there is limited information on the radial heterogeneity of physical properties from the pith to the bark, particularly regarding TW formation. In this study, an inclined thick branch of a keyaki tree (Zelkova serrata Makino) was used to measure the radial distribution of wood physical properties—such as hygrothermal recovery (HTR) strain, drying strain, cellulose crystallinity index (C.I.), and microfibril angle (MFA) related to G-layer proportion—from the pith to the bark. On the upper half of the inclined branch, the G-layer was formed, and its proportion remained nearly uniform. Higher C.I., smaller MFA, and greater drying strain were observed in this region, primarily influenced by the G-layer proportion. The HTR strain exhibited behavior characteristic of TW near the bark on the upper side. However, as it approached the pith, the HTR strain displayed behavior distinct from that of TW. This suggests that the HTR strain reflects not only the G-layer proportion but also other factors related to the distance from the pith, such as the history of residual growth stress accumulation in the xylem during secondary growth.