Collaborative robots have become a research focus because of their wide applications. However, the previous compliance design method of the flexible rotary joint for collaborative robot mainly relied on experience of designers, and “trial and error” method is usually adopted, no feasible and systematic theory for the designer to select numerical value and series-parallel connection mode of the springs and dampers for the flexible rotary joint. Thus, developing a feasible compliance modeling theory to guide the design of the flexible rotary joint is a particularly challenging task. The main contribution of this paper is to present a novel and effective compliance modeling theory of the flexible rotary joint for collaborative robot based on electrical and mechanical passive network synthesis, to provide theoretical and systematic guidances for compliance design of the flexible rotary joint. First, inerter element is introduced into the mechanical system, and the compliance of the flexible rotary joint is expressed as an angular velocity admittance function using electrical and mechanical network analogy. Then, by passive network synthesis theory, the three kinds of compliance realization forms of rational function and four-element compliance realization conditions of biquadratic function for the flexible rotary joint are given using inerters, springs, and dampers. Moreover, numerical examples and simulations are conducted to illustrate effectiveness of the proposed compliance realization method. Finally, discussions are given to illustrate advantages of the proposed compliance modeling and design methods compared with the previous method.