Underwater navigation practice shows that the long baseline survey has the characteristics of coplanar configuration, flat geometry, and large refraction error, which brings challenges to underwater positioning. To address this challenge, this paper proposes a high-precision real-time range-difference location algorithm based on underwater long baseline measurement. Firstly, the system error sources of long baseline positioning are analyzed in detail, the propagation models of different system errors are constructed, and the effects of system error sources on the rangefinder are described. Secondly, the limitations of traditional range iterative location algorithms and geometric analytic location algorithms in long baseline locations are analyzed. Then, using the strategy of converting the long baseline range information into the distance difference information, a high-precision real-time distance difference location algorithm based on long baseline measurement is presented. Finally, the feasibility of the algorithm is analyzed from the perspective of precision analysis. Numerical simulation results show that compared with the two traditional long-baseline positioning algorithms, the proposed algorithm has higher positioning accuracy and potential application value in the field of underwater real-time positioning.