Applying finite-time thermodynamics theory, an irreversible steady flow Lenoir cycle model with variable-temperature heat reservoirs is established, the expressions of power (P) and efficiency (η) are derived. By numerical calculations, the characteristic relationships among P and η and the heat conductance distribution (uL) of the heat exchangers, as well as the thermal capacity rate matching (Cwf1/CH) between working fluid and heat source are studied. The results show that when the heat conductances of the hot- and cold-side heat exchangers (UH, UL) are constants, P-η is a certain “point”, with the increase of heat reservoir inlet temperature ratio (τ), UH, UL, and the irreversible expansion efficiency (ηe), P and η increase. When uL can be optimized, P and η versus uL characteristics are parabolic-like ones, there are optimal values of heat conductance distributions (uLP(opt), uLη(opt)) to make the cycle reach the maximum power and efficiency points (Pmax, ηmax). As Cwf1/CH increases, Pmax-Cwf1/CH shows a parabolic-like curve, that is, there is an optimal value of Cwf1/CH ((Cwf1/CH)opt) to make the cycle reach double-maximum power point ((Pmax)max); as CL/CH, UT, and ηe increase, (Pmax)max and (Cwf1/CH)opt increase; with the increase in τ, (Pmax)max increases, and (Cwf1/CH)opt is unchanged.