Laser Doppler vibrometers (LDVs) are widely used for vibration testing in various fields. Nonlinearity errors are the key factor affecting the measurement accuracy of LDVs. The conventional Heydemann method cannot correct nonlinearity errors produced by noisy environments. Thus, we establish a novel model to describe dynamic nonlinearity errors produced in noisy environments and propose a compensation method to mitigate signal distortion. The performance of the proposed method is assessed by performing both simulations and experiments. The results of experiments carried out in a noisy environment indicate that the proposed method suppresses the nonlinearity to 30 nm compared to 737 nm using the conventional Heydemann correction. The proposed method can improve the accuracy of LDV measurements in industrial environments.