Collinear (Coaxial) volume holographic data storage (CVHDS) is one of the promising technologies for the commercialization of the volume holographic data storage. In order to optimize the parameters for the construction of transmission type of CVHDS system, some CVHDS properties such as storage density, crosstalk characteristics and crystal storage property are investigated. The relation between the storage density of CVHDS and the parameters of objective lens, the pixel pitch of the spatial light modulator (SLM), the effective pixel number of the SLM and the shift pitch for multiplexing are theoretically derived. The physical interpretation for the expression of the point spread function is proposed. The crosstalk property is analyzed for different reference patterns based on point spread function. Then the polarization state in the photorefractive crystal is optimized for as larger dynamic range as possible. Finally, the transmission type of CVHDS system based on LiNbO3 crystal is constructed for the data-storage experimental test. Data-storage experimental results indicate that pictures with high resolution can be recorded and reconstructed with high fidelity by this system. Compared with the two-axis geometry, the optical setup of the CVHDS system is more concise and smaller in size.