China Digital Radio (CDR) broadcasting is a new standard of digital audio broadcasting of FM frequency (87–108 MHz) based on our research and development efforts. It is compatible with the frequency spectrum in analog FM radio and satisfies the requirements for smooth transition from analog to digital signal in FM broadcasting in China. This paper focuses on the signal characteristics and processing methods of radio-based passive radar. The signal characteristics and ambiguity function of a passive radar illumination source are analyzed. The adverse effects on the target detection of the side peaks owing to cyclic prefix, the Doppler ambiguity strips because of signal synchronization, and the range of side peaks resulting from the signal discontinuous spectrum are then studied. Finally, methods for suppressing these side peaks are proposed and their effectiveness is verified by simulations.