With the continuous promotion of high and new technologies such as computers and big data, humans enter a new period-information age. Mass data and information can be transmitted and exchanged online through the network. In recent years, research on image encryption based on optical information processing technology is becoming more and more favored by researchers. In this regard, this study will focus on the research of encryption algorithms in optical images and realize encryption through fractional Fourier transform and Arnold transform. This article first introduces the research background of the subject and analyzes the current situation of the subject at home and abroad and then proposes the theoretical guidance basis for the subject research, which covers the fractional Fourier transform, Arnold transform, computational hologram, and picture evaluation index system. Finally, MATLAB simulation and performance analysis are carried out for fractional Fourier transform, Arnold transform, and holographic encryption technology. The results shows that the improved algorithm in this study performs better in the encryption and decryption process.