As a range-free localization algorithm, DV-Hop has gained widespread attention due to its advantages of simplicity and ease of implementation. However, this algorithm also has some defects, such as poor localization accuracy and vulnerability to network topology. This paper presents a comprehensive analysis of the factors contributing to the inaccuracy of the DV-Hop algorithm. An improved proportional integral derivative (PID) search algorithm (PSA) DV-Hop hybrid localization algorithm based on weighted hyperbola (IPSA-DV-Hop) is proposed. Firstly, the first hop distance refinement is employed to rectify the received signal strength indicator (RSSI). In order to replace the original least squares solution, a weighted hyperbolic algorithm based on the degree of covariance is adopted. Secondly, the localization error is further reduced by employing the improved PSA. In addition, the selection process of the node set is optimized using progressive sample consensus (PROSAC) followed by a 3D hyperbolic algorithm based on coplanarity. This approach effectively reduces the computational error associated with the hopping distance of the beacon nodes in the 3D scenarios. Finally, the simulation experiments demonstrate that the proposed algorithm can markedly enhance the localization precision in both isotropic and anisotropic networks and reduce the localization error by a minimum of 30% in comparison to the classical DV-Hop. Additionally, it also exhibits stability under the influence of a radio irregular model (RIM).