The invention provides an LED (Light Emitting Diode) indoor positioning navigation method and a positioning navigation system. An LED lamp serves as an emitting terminal; an emitting terminal driving device is used for controlling the strength of current so as to cause the change of brightness of the light and transfer the physical position data; the data frame with clear hierarchy of code element information is designed; zero bit filling is introduced into the sending and receiving of the data frame, so as to realize the transparent transmission and distinguish the frame header, the verifying code of the physical position information and the frame tail; the frame header has a specific coding sequence and can be detected, so that the validity of the data frame can be judged; the frame length of data frame can be analyzed; the invalid data frame can be timely detected and abandoned; different sizes of LED lamp sets with grid unit topology network structures can be designed according to different illuminating areas; only one of the LED lamps of a positioning unit is used for emitting the data frame at each time slot, and meanwhile, the other LED lamps all emit equidistant full zero data frames; the inter-symbol interference and the background noise are extremely reduced; the safety and reliability of the data frame are ensured.