In the field of optical communication, laser and its modulation bandwidth and modulation rate are very important for optical wireless communication. There are two main modulation modes for semiconductor laser signal: internal modulation and external modulation. These two modulation technologies have their own characteristics and are suitable for different fields of optical fiber communication. Internal modulation laser, also known as direct modulation laser, has become a cost-effective light source for the Fifth Generation Mobile Communication Technology (5G) fronthaul and data center because of its high-speed transmission and low cost. There is no additional Chirp of light source in external modulation laser, so the Composite Second Beat (CSB) distortion caused by fiber dispersion can be effectively overcomed. On the basis of reviewing the development history of communication laser and its modulation technology, this paper introduces the work and main progress made by Xi’an University of Technology in this field. This paper discusses the internal and external factors of nonlinear distortion of semiconductor laser, simulates the effects of various parameters of response characteristics, linearization compensation method and power control system on the output light source of light emitting device, and analyzes the influence of temperature fluctuation on the output power of laser and modulation device. Based on the basic theory of refractive index ellipsoid and numerical analysis, the variation trend of emitted light intensity with temperature is discussed under the longitudinal and transverse modulation, respectively. The results show that the variation trend of outgoing light intensity with temperature under longitudinal modulation is only related to the refractive index of Lithium Niobate (LN) crystal. Under transverse modulation, the variation trend of outgoing light intensity with temperature is affected not only by the refractive index of the crystal, but also by the crystal size and its expansion coefficient. Therefore, the special size crystal can be used to improve the temperature stability of the electro-optic modulator.