This paper presents a heart rate variability (HRV) parameter-based feature transformation algorithm for driving stress recognition. The proposed parameter-based transformation algorithm consists of feature generation, feature selection, and feature dimension reduction. In order to generate significant features from ECG signals, parameter-based feature generation method is proposed in this study. The parameter-based method calculates features from five-minute HRV analysis. The kernel-based class separability (KBCS) is employed as the selection criterion for feature selection. To reduce computational load of the algorithm, principal component analysis (PCA) and linear discriminant analysis (LDA) are adopted for feature dimension reduction. Our experimental results show that the combination of KBCS, LDA, and PCA can achieve satisfactory recognition rates for the features generated by parameter-based feature generation method. The main contribution of this study is that our proposed approach can use only ECG signals to effectively recognize driving stress conditions with very good recognition performance.