We study the characteristics of a dual-frequency laser Doppler velocimeter (DF-LDV) based on an optically injected semiconductor laser. The laser operated in a period-one (P1) dynamical state with two optical frequencies separated by 11.25 GHz is used as the dual-frequency light source. With a microwave beat signal carried by the light, the DF-LDV possesses both the advantages of good directionality, high intensity, and high spatial resolution from the light and low speckle noise and good coherence from the microwave, respectively. By phase-locking the two frequency components with a microwave signal, the coherence of the dual-frequency light source can be further improved and the detection range can be much extended. In this paper, velocity resolutions of the DF-LDV with different amounts of speckle noise and at different detection ranges are experimentally measured and analyzed. Compared with the conventional single-frequency LDV (SF-LDV), the velocity resolution of the DF-LDV is improved by 8x10(3) times from 2.5 m/s to 0.31 mm/s for a target with a longitudinal velocity v(z) - 4 cm/s, a transverse velocity v(t) - 5 m/s, and at a detection range of 108 m.