We present detailed investigations of the local strain distribution and the induced second-order optical nonlinearity within strained silicon waveguides cladded with a Si₃N₄ strain layer. Micro-Raman Spectroscopy mappings and electro-optic characterization of waveguides with varying width w(WG) show that strain gradients in the waveguide core and the effective second-order susceptibility χ(2)(yyz) increase with reduced w(WG). For 300 nm wide waveguides a mean effective χ(2)(yyz) of 190 pm/V is achieved, which is the highest value reported for silicon so far. To gain more insight into the origin of the extraordinary large optical second-order nonlinearity of strained silicon waveguides numerical simulations of edge induced strain gradients in these structures are presented and discussed.