In this paper, the principle of linear frequency-modulation (LFM) with an external microcavity laser is analyzed mathematically and a method to establish the math model of LFM heterodyne interference is presented. The expression of LFM heterodyne interference is deduced by an illustration of a triangular frequency modulation. At present, one application of the LFM technique is non-guide absolute distance measurement. Experimental results of a system for absolute distance measurement based on a microchip solid laser and LFM technique are given. Based on the precisely theoretical model some effective approaches to improve the performance of LFM and decrease the measuring error are discussed.