The four-quadrant fine tracking electro-optical inspection model was studied, and the conversion relations of natural resolution and division precision under atmospheric environment were deduced. On this basis, a method was given to promote the system natural resolution which can effectively reduce the light intensity flicker effect. Discussed were the reasons for the background optical errors, the electronic interference error and the relationship between errors and the system signal-to-noise ratio. And different compensation methods were given for different error. Simulation results show that the background light error is directly related to the beacon signal-to-noise ratio and the optical axis deviation; reducing the system filter bandwidth can suppress the electronic interference; and under weak atmospheric turbulence conditions, increasing the received optical caliber can effectively constrain the signal fading.