Gear transmission systems are widely used to transfer energy and motion and to guarantee the accuracy of the entire machine system. The modification technique is a common method that improves the gear profile and reduces the transmission error. Based on the parametric model, a modified gear can be established for the evaluation of static and dynamic characteristics. The influences of profile modification parameters and gear parameters are investigated while changing the rules of different kinds of factors. Based on sensitive parameters, a two-stage profile modification curve is proposed to improve the performance of gear pairs. Thus, considering the time-varying mesh stiffness and backlash, a novel, dynamic modified gear model is established to analyze the dynamic performance, such as the dynamic transmission error. Based on the proposed curve, the range and amplitude of the transmission error can be decreased. Additionally, the vibration displacement and noise can be reduced to improve the running characteristics.