This paper presents a potential FM double modulation technique for subcarrier optical transmission in order to improve the input dynamic range. The proposed theory of FM double modulation is presented. The BER performance and input dynamic range are shown theoretically and experimentally compared with conventional direct intensity modulation. It was found that the dynamic range could be experimentally improved by 20dB compared with the conventional method by using FM double modulation. The proposed technique achieved an input dynamic range of 60 dB even when using a commercial Fabri-Perot LD.