Polarization holography is a newly researched field, that has gained traction with the development of tensor theory. It primarily focuses on the interaction between polarization waves and photosensitive materials. The extraordinary capabilities in modulating the amplitude, phase, and polarization of light have resulted in several new applications, such as holographic storage technology, multichannel polarization multiplexing, vector beams, and optical functional devices. In this paper, fundamental research on polarization holography with linear polarized wave, a component of the theory of polarization holography, has been reviewed. Primarily, the effect of various polarization changes on the linear and nonlinear polarization characteristics of reconstructed wave under continuous exposure and during holographic recording and reconstruction have been focused upon. The polarization modulation realized using these polarization characteristics exhibits unusual functionalities, rendering polarization holography as an attractive research topic in many fields of applications. This paper aims to provide readers with new insights and broaden the application of polarization holography in more scientific and technological research fields.