Digital holography microscopy has been widely used as a testing technology in many areas for the ability of real-time three-dimensional imaging. In this study we focus on understanding the system imaging mechanism and recording capacity of the off-axis image plane digital holography (IPDH) which has several advantages. Wigner distribution function and space-bandwidth product are utilized to examine the minimum requirement for the recording capacity of the CCD camera. The discussion provides a good understanding and a useful guide to the formation of practical IPDH systems.