Rotation modulation is an effective method to suppress the errors of the inertial navigation system (INS). However, when the carrier is in angular motion status, the effect of error suppression will be influenced. The influence is obvious especially when the carrier's heading angle changes largely. A parameter named moving-base rotation modulation (MRM) coefficient is proposed, which is used to analyze the relationship between the angular rate of rotation modulation and the effect of rotation modulation. According to the analysis result, when the rotary INS works in the rotation angular rate range with a smaller MRM coefficient, the disturbance to error compensation from the carrier's motion will be decreased, so that the precision of INS will be improved. This method is simple to realize and without extra system complexity, which is practical in engineering application.