The inadequate ventilation and complex environments in underground coal mines lead to a high concentration of dust particles. As a result, the health of the miners and the accuracy of laser rangefinder measurements are endangered. It is crucial to enhance the laser rangefinder’s efficiency to mitigate health risks and reduce labor intensity. In this study, we propose a laser power attenuation model and a ranging correction model to address the issues of laser power attenuation and inaccurate ranging in coal dust environments. The proposed models are based on theoretical analysis and practical experiments, and both are dependent on the dust particle size (<250 μm) and mass concentration. Firstly, we assessed the factors that caused laser power attenuation and demonstrated that our proposed model could accurately predict them (maximum residual of 0.06). Secondly, we obtained the connection between the attenuation coefficient and dust concentration by applying the Lambert–Beer law. Lastly, we established the ranging correction model by collecting laser wavelength information. The outcomes show that the root mean square error of the corrected values ranges between 0.27 and 0.47 mm. To summarize, our suggested model and correction technique can efficiently enhance the precision of laser rangefinder measurements, thus improving underground work in coal mines.