There is a spectral transmission peak between 1107 and 1108 absorption lines of iodine. The spectral transmission peak can suppress the atmospheric Rayleigh backscattering,while affect weakly on the atmospheric Mie backscattering. The high spectral resolution lidar,in which the above iodine filter acts as the ultra-narrow band filter to the Rayleigh and Mie backscattering signals,can measure the atmospheric backscattering ratio and wind field. The measurement theory is deduced and simulated by using reasonable lidar parameters and atmospheric models. The simulation results show that for the atmospheric backscattering ratio measurement,the precision is 5% for altitude lower than 25 km at night and 8 km in daytime. For the line-of-sight wind velocity measurement,the measuring range is ±40 m/s and the precision is 5% for altitude lower than 5 km at night and 4 km in daytime.