Orbital angular momentum modes in optical fibers have polarization mode dispersion. The relationship between polarization mode dispersion and the birefringence vector can be deduced using an optical fiber dynamic equation. First, a mathematical model was established to formulate mode dispersion caused by stress-induced birefringence. Second, in the stress-induced birefringence simulation model, the finite element method was used to analyze the transmission characteristics of the hollow-core circular photonic crystal fiber. Finally, mode dispersion caused by stress-induced birefringence was obtained using theoretical derivation and simulation analyses. The results showed that the new fiber type has good transmission characteristics and strong stress sensitivity, which provide key theoretical support for optimizing the structural parameters of optical fiber and designing stress sensors.