My daughter in law whome I love dearly feels crushed when baby cries for me and also when I leave the room or after visiting with baby and I leave she also cries my daughter in law is upset about what is happening and is now feeling tense when baby and I are speding time together.what can I do to help this situation? Also this is her first baby.

Speak with her about the situation and let her know you have no desire to take her place as Mother. Let her know that babies are very attune to the feelings of the person holding them and if you are peaceful, while she is nervous, the baby will prefer the peaceful person.
Help her learn how to be comfortable with the baby, and really bond with her baby.
Make sure she is the one doing the majority of the feeding & bathing, as these are the best times to bond, also see that she doesn't raise her voice (even to others in the room) as the baby will pick up on the general vibe in the household.
Congratulations on your Grandbaby!