In order to determine the influence of each error source on position and orientation determination error for three-field position and orientation device, the error analysis model of system was established. Firstly, the principle of three-field position and orientation device using space analytic geometry method was proposed, and the various error sources which affected accuracy of position and orientation was pointed out. Secondly, the characteristic and the probability distribution of error source were summarized; and the impact of error sources on position and orientation information pair was assessed. Then, the position and orientation error analysis model was established by using the homogeneous coordinate transformation matrix and principle of navigation. Finally, the error simulation was analyzed by using Monte Carlo method. The simulation results show that mean of position fix error is 121.0 m, mean of orientation fix error is 7.4″, and it is pointed out that dominant error source is horizontal measurement error, followed by data error of deviation of vertical. Field experiments show that the mean of position fix error is 182.12 m; mean of orientation fix error is 9.3″, and it is demonstrated that horizontal measurement error has the main influence on the overall outcome.