The stability and accuracy of explicit high-order finite difference (HOFD) algorithms have been research hotspots in different fields. To improve the stability and accuracy of the HOFD algorithms in thermal simulations, we present a Lax-Wendroff high-order finite difference (LHOFD) algorithm to solve the 2D transient heat transfer equation in this paper and develop an improved LHOFD (IHOFD) algorithm to improve the stability of the LHOFD algorithm. The formulas of the general high-order central FD (HOCFD) coefficients and the truncation error coefficient as well as the high-order non-central FD (HONFD) coefficients and the truncation error coefficient of the fourth-order spatial derivative are derived concisely in a different way. Furthermore, a unified analytical formula of the general HOCFD and HONFD coefficients, which can calculate the spatial derivative of any integer order, is derived. A new strategy of combination with the HOCFD and HONFD approximations under the same high-order accuracy as the internal computational domain is proposed to calculate the mixed derivatives of the boundary domains with high accuracy, no additional computational cost, and easy implementation. Then, the accuracy analysis, stability analysis, and comparative analysis of numerical simulation results obtained by the LHOFD and IHOFD algorithms with the exact solution show the correctness and validity of the proposed algorithms and their stability formulas, and the advantages of the proposed algorithms. The proposed algorithms are valid under both symmetric and asymmetric boundary conditions. The stability factor of the LHOFD algorithm is slightly higher than that of the conventional algorithm. The stability factor of the IHOFD algorithm is twice that of the conventional algorithm, and the maximum absolute error of the thermal simulation is within 0.015 (°C).