The structure and characteristics of CdTe thin films are dependent on the working atmosphere states in close-spaced sublimation. In the present paper, CdTe polycrystalline thin films were deposited by CSS in mixture atmosphere of argon and oxygen. The physical mechanism of CSS was analyzed, and the temperature distribution in CSS system was measured. The dependence of preliminary nucleus creation on the atmosphere states (involving component and pressure) was studied. Transparencies were measured and optic energy gaps were calculated. The results show that: (1) The CdTe films deposited in different atmospheres are cubic structure. With increasing oxygen concentration, a increases and reaches the maximum at 6% oxygen concentration, then reduces, and increases again after passing the point at 12% oxygen concentration. Among them, the sample depositing at 9% oxygen concentration is the best. The optic energy gaps are 1.50-1.51 eV for all CdTe films. (2) The samples depositing at different pressures at 9% oxygen concentration are all cubical structure of CdTe, and the diffraction peaks of CdS and SnO2:F still appear. With the gas pressure increasing, the crystal size of CdTe minishes, the transparency of the thin film goes down, and the absorption side shifts to the short-wave direction. (3) The polycrystalline thin films with high quality deposit in 4 minutes under the depositing condition that the substrate temperature is 550 degrees C, and source temperature is 620 degrees C at 9% oxygen concentration.