Aiming at the problem that the accuracy of localization algorithm based on RSSI ranging of indoor positioning is low due to the obstructions indoor, this paper proposes new localization algorithm based on distance ranging and nonranging. Based on the results using the original positioning algorithm based on RSSI ranging, it corrected the distance vector from signal reader to signal source, which was calculated by original location algorithm, and the characteristic information on the interference of the room internal barrier was imported to the signal propagation and took it as reference. Considering the relationship between the obstacle and the position of the label, it also corrected the positioning result by improving weighted centroid location algorithm based on potential obstacles iterations. The positioning accuracy of the method is increased by 50% compared to the method of scheduled, in which the influences of the information of obstacles is not consider.