Rotating target is the common equipment used to test tracking performance of photoelectric theodolite indoor. With the aim to study the impact of rotating target characteristics on target tracking performance of photoelectric theodolite, we introduced the basic structure of rotating target and the core parameters which can impact the motion features of rotating target. Using the method of spherical trigonometry, we established the coordinate equation for the angle of azimuth and elevation. According to the coordinate equation, we presented how the parameters of rotating target take responsible for the target motion features. Finally, we demonstrate the difference of motion features between rotating target and actual tracking target; suggesting that using rotating target to test the tracking performance of photoelectric theodolite is inaccurate.