The LiDAR system should be optimally designed to recognize any object, regardless of its surface or reflectance. Several key factors influence the performance of LiDAR, such as laser wavelength, optical power, modulation frequency, detector, signal processing, and others. This work validates the distance measurement performance of the indirect time of flight (iToF) LiDAR system by adjusting optical power and level of modulation frequency. Two target materials—aluminum foil (AF) and high-impact polystyrene (HIPS)—were experimentally characterized by measuring each target from 1 m to 56 meters. The optical power is adjusted by applying a bias current of 60 mA and 100 mA from a laser driver. The level of modulation frequency varies from 500 mV, 1000 mV, and 1260 mV in a signal generator. The experiment’s results, achieved by combining optical power and level of modulation frequency, indicate that the proposed LiDAR system can effectively differentiate between two target materials and maintain high accuracy across various distances. High optical power and level of modulation frequency settings allow possibilities to improve the signal strength obtained by the receiver of the iToF LiDAR. Possibilities the higher signal strength is also obtained when the target has a higher reflectivity. Consequently, the LiDAR system can cover a maximum distance for a target AF and HIPS at 56 m and 31 m, respectively.