The invention discloses a hydraulic structure, and a base seepage condition distributed optical fiber identification system and a method thereof. The system comprises a specially-produced self-controlled heat source seepage single-mode optical fiber, an optical path coupler and a synchronous controller, the synchronous controller is connected with a mode locked laser, a polarization beam splitter, an isolator, a grating pair, a diffraction grating, a reflector, a beam splitter, a nonlinear crystal, a spectrometer and a Michelson interferometer, the output end of the Michelson interferometer is connected with the optical path coupler, the output end of the optical path coupler is connected with a detector and a second optical splitter respectively, the detector is connected with a digital signal processor, the second optical splitter is connected with the digital signal processor through an amplification circuit, and the digital signal processor is connected with the synchronous controller and a gatherer respectively. The system and the method have the advantages of high precision, high spatial resolution, high sensing speed, long distance monitoring, and realization of the flowing and automation of monitoring and condition identification of the hydraulic structure in bad environment and the base seepage thereof.