Precision grinding is the key process to meet the heavy demands of large-aperture aspherical optical elements in the fields of laser nuclear fusion devices, large-aperture astronomical telescopes and high-resolution space cameras. In this study, the arc envelope grinding process of large-aperture aspherical optics was investigated using the CM1500 precision grinding machine with a maximum machinable diameter of Φ1500 mm. The analytical form error models of aspherical workpiece induced by wheel setting errors were established for both parallel grinding and cross grinding. Result show that the form error is much more sensitive to the wheel setting error along the feed direction than that along the lateral direction. It is a bilinear function of the feed-direction wheel setting error and the distance to optical axis. Based on the above analysis, a method to determine the wheel setting error is proposed. The grinding tests were then performed with the wheel accurately aligned. By using a newly proposed partial error compensation method with an appropriate compensation factor, a form error of 3.4 µm PV for a Φ400 mm elliptical K9 glass surface was achieved.