Objectives: The stochastic model of observation information describes the accuracy of observation information and its correlation, and also plays an important role in parameter estimation, quality control and accuracy evaluation. In the process of global navigation satellite system (GNSS) precision positioning, an accurate stochastic model is essential for improving the accuracy of float solution, enhancing the success rate of ambiguity resolution, increasing the accuracy of gross error detection, and obtaining the accurate and reliable positioning results. An optimization method for stochastic model of BeiDou navigation satellite system (BDS) was proposed by handling the properties of four classic elevation-dependent stochastic models based on the relationship between BDS satellite observation information and elevation. Methods: First, the accuracy of BDS four-frequency observation information was evaluated by the simplified Helmert variance estimation method. Then, the model parameters could be fitted based on the estimated precision of observation information. Finally, the statistical characteristics of four stochastic models, including piecewise function, sine function, cosine function and exponential function, were tested by the overall test and ω-test methods. Results: The results show that the accuracy of pseudorange and carrier phase for BDS-3 satellite are related to elevation, and the correlation degree is different by GNSS observation types. The stochastic model of exponential function shows the best performance on the fitting error, the overall test and the ω-test. The maximum fitting errors of pseudorange and carrier phase are 0.029 m and 5.484 mm, respectively. The false alarm rates of the overall test for the float solution and the fixed solution are 5.1 % and 4.9 %, respectively. In addition, the maximum false alarm rates of the ω-test are 6.8 % for the pseudorange and 4.9 % for the carrier phase. Conclusions: The stochastic model of exponential function can get the shortest convergence time and the highest positioning accuracy for BDS-3 quad-frequency precise point positioning. It can also accurately describe the accuracy of BDS observation information and improve the accuracy and reliability of BDS precise positioning results.