The dynamic stall characteristics of rotor airfoil are researched by employing unsteady Reynolds-Averaged Navier-Stokes (RANS) method under oscillating freestream velocity conditions. In order to simulate the oscillating freestream velocity of airfoil under dynamic stall conditions, the moving-embedded grid method is employed to simulate the oscillating velocity. By comparing the simulated dynamic stall characteristics of two-dimensional airfoil and three-dimensional rotor, it is indicated that the dynamic stall characteristics of airfoil under oscillating freestream velocity reflect the actual dynamic stall characteristics of rotor airfoil in forward flight more accurately. By comparing the simulated results of OA209 airfoil under coupled freestream velocity/pitching oscillation conditions, it is indicated that the dynamic stall characteristics of airfoil associate with the critical value of Cp peaks (i.e., the dynamic stall characteristics of OA209 airfoil would be enhanced when the maximum negative pressure is larger than −1.08, and suppressed when this value is smaller than −1.08). By comparing the characteristics of vortices under different oscillating velocities, it indicates that the dissipation rate of leading edge vortex presents as exponent characteristics, and it is not sensitive to different oscillating velocities.