The two-phase countercurrent flow limitation (CCFL) in horizontal channels is important in relation to nuclear reactor safety. In this study, we aim to investigate the CCFL characteristics and the flow behaviors in horizontal circular pipes with small diameters. The effects of pipe diameter and the water head in the upper plenum on CCFL characteristics are experimentally studied. An image-processing technique and statistical treatments are implemented to analyze the horizontal countercurrent flow. The results show that the CCFL characteristics for the horizontal circular pipes with small diameters can be well correlated using the dimensionless parameters, which are based on adding fluid viscosity to the Wallis parameters. The CCFL characteristics are significantly affected by the pipe diameter and are slightly affected by the water head above the horizontal pipe. The gas–liquid interface fluctuates with certain periods, and flow pattern transitions happen in the horizontal air–water countercurrent flow. As the air flow rate increases, the occurrence location of the liquid slug appears to shift towards the water entrance. In addition, the further away from the water entrance, the lower the average of liquid holdup.