Dynamic detection of polarization states is very important for laser polarization coding guidance systems. In this paper, a set of dynamic polarization decoding and detection system used in laser polarization coding guidance was designed. Detection process of the normal incident polarized light is analyzed with Jones Matrix; the system can effectively detect changes in polarization. Influence of non-normal incident light on performance of polarization decoding and detection system is studied; analysis showed that changes in incident angle will have a negative impact on measure results, the non-normal incident influence is mainly caused by second-order birefringence and polarization sensitivity effect generated in the phase delay and beam splitter prism. Combined with Fresnel formula, decoding errors of linearly polarized light, elliptically polarized light and circularly polarized light with different incident angles into the detector are calculated respectively, the results show that the decoding errors increase with increase of incident angle. Decoding errors have relations with geometry parameters, material refractive index of wave plate, polarization beam splitting prism. Decoding error can be reduced by using thin low-order wave-plate. Simulation of detection of polarized light with different incident angle confirmed the corresponding conclusions.