Background light noise is one of the major challenges in the design of Light Detection and Ranging (LiDAR) systems. In this paper, we build a single-beam LiDAR module to investigate the effect of light intensity on the accuracy/precision and success rate of measurements in environments with strong background noises. The proposed LiDAR system includes the laser signal emitter and receiver system, the signal processing embedded platform, and the computer for remote control. In this study, two well-known time-of-flight (ToF) estimation methods, which are peak detection and cross-correlation (CC), were applied and compared. In the meanwhile, we exploited the cross-correlation technique combined with the reduced parabolic interpolation (CCP) algorithm to improve the accuracy and precision of the LiDAR system, with the analog-to-digital converter (ADC) having a limited resolution of 125 mega samples per second (Msps). The results show that the CC and CCP methods achieved a higher success rate than the peak method, which is 12.3% in the case of applying emitted pulses 10 µs/frame and 8.6% with 20 µs/frame. In addition, the CCP method has the highest accuracy/precision in the three methods reaching 7.4 cm/10 cm and has a significant improvement over the ADC’s resolution of 1.2 m. This work shows our contribution in building a LiDAR system with low cost and high performance, accuracy, and precision.