The increase in the global atmospheric CO2 concentration is expected to increase the productivity of forests, but the dynamic processes of such increased productivity in the forest canopy remain unclear. In this study, diurnal and seasonal variations and vertical changes in photosynthetic rates were investigated in Camphor tree (Cinnamomum camphora) forests in subtropical China. The effect of photosynthetically active radiation (PAR) and CO2 concentrations on photosynthetic rates were also examined in the studied forests. Results showed the diurnal patterns of photosynthesis exhibited two peaks on sunny days, but only one peak on cloudy days. The daily average photosynthetic rate on cloudy days was approximately 74% of that on sunny days. The photosynthetic rate decreased along the vertical forest canopy profile. If the photosynthetic rate in the upper canopy layer was 100%, the corresponding rates were 83% and 25% in the middle and lower canopy layers, respectively. The rates of dark respiration derived from the PAR response curve were 1.73, 1.25, and 1.0 µmol m−2 s−1 for the upper, middle, and lower canopy layers, respectively. The apparent quantum yield of photosynthesis was 0.0183, 0.0186, and 0.0327 µmol CO2 µmol−1 PAR for the upper, middle, and lower canopy, respectively. The initial slope of the photosynthetic response curve to CO2 was highest in the upper canopy and lowest in the lower canopy. The seasonal variation in photosynthetic rates exhibited a two-peaked pattern at all canopy positions, with the two peaks occurring in June and September. The stand biomass and biomass carbon storage were 144.7 t ha−1 and 71.6 t C ha−1 in the examined forests, respectively. The study provides a scientific reference for future research on accessing carbon sequestration and designing forest management practices, specifically in regulating canopy structure in subtropical regions.