A distributed optical fiber identification system and method for seepage conditions of a hydraulic structure and a base thereof including a single-mode optical fiber having an automatic control heat source produced for seepage measurement, an optical path coupler and a synchronous controller, the synchronous controller is connected to a mode locked laser, a polarization beam splitter, an isolator, a grating pair, a diffraction grating, a reflector, a beam splitter, a nonlinear crystal, a spectrometer and a Michelson interferometer, the output end of the Michelson interferometer is connected to the optical path coupler, the output end of the optical path coupler is connected to a detector and a second optical splitter respectively, the detector is connected to a digital signal processor, the second optical splitter is connected to the digital signal processor through an amplifying circuit, and the digital signal processor is connected to the synchronous controller and a collector respectively.