The invention discloses a digital processing method of an altimeter of a linear frequency modulation continuous wave radar, which belongs to the field of the radio altimeters. The digital processing method comprises the following steps: step 1, obtaining beating signals from an orthogonal mixer arranged at the front end of the altimeter of the radar, and carrying out A/D (analog-to-digital) sampling to obtain a digital signal sequence; step 2, performing Fourier transform on the digital signal sequence, and calculating the amplitude of a spectral line; step 3, judging according to the amplitude of the spectral line of an amplitude spectrum, and measuring the beating frequency of the digital signal sequence; step 4, refining the frequency spectrum, calculating the slope correction of saw-tooth wave, and correcting the slope of the voltage signals of the saw-tooth wave; and step 5, calculating the high value of the current altimeter according to the slope of the voltage signals of the saw-tooth wave. The FFT-CZT method adopted by the invention is insensitive to noises and can perfectly work at lower signal-to-noise ratio, but the measurement precision is reduced. Because of having no limit on the properties of the targets, the digital processing method can be applied to the measurement and the analysis of point targets or surface targets.