High-velocity reentry objects suffer from plasma sheath during reentry through the atmosphere, which affects the propagation characteristics of radar signals. The existing research mainly focuses on the time-frequency characteristics of radar signals, neglecting the polarization within the geomagnetic environment. In this article, the distortion of polarization characteristics for L-band fully polarimetric radar is analyzed, and the influence of the geomagnetic field is evaluated. Based on the Appleton–Hartree formula, the refractive index of the plasma sheath considering the geomagnetic field is derived and analyzed. The error model for the polarization deflection (PD) of radar waves is then established based on the phase screen model. The magnetized plasma sheath causes the deflection of the polarization plane for the radar signal, leading to distortion in the polarization characteristics and the attenuation of the echo amplitude. Considering the typical parameters of the plasma sheath, the influences of the electron density, collision frequency, the geomagnetic field and the radar frequency are analyzed quantitatively. Specifically, the PD anomaly phenomenon is analyzed and the corresponding analytical result of radar frequency is also derived. The relationship between the geomagnetic field and the PD, as well as the attenuation, is considered to be approximately linear. The absorption attenuation is primarily influenced by collision frequency and is immune to the geomagnetic field. In addition, the increasing electron density expands them, whereas the radar frequency and the collision frequency have the opposite effect. Simulations with real SAR data from ALOS-2 demonstrate the distortions resulting from the magnetized plasma sheath on the radar echoes in an L-band fully polarimetric radar system.