Effective recognition of tags in the dynamic measurement system would significantly improve the reading performance of the tag group, but the blurred outline and appearance of tag images captured in motion seriously limit the effectiveness of the existing tag group recognition. Thus, this paper proposes passive tag group recognition in the dynamic environment based on motion blur estimation and improved YOLOv2. Firstly, blur angles are estimated with a Gabor filter, and blur lengths are estimated through nonlinear modelling of a Generalized Regression Neural Network (GRNN). Secondly, tag recognition based on YOLOv2 improved by a Gaussian algorithm is proposed. The features of the tag group are analyzed by the Gaussian algorithm, the region of interest of the dynamic tag is effectively framed, and the tag foreground is extracted; Secondly, the data set of tag groups are trained by the end-to-end YOLOv2 algorithm for secondary screening and recognition, and finally the specific locations of tags are framed to meet the effective identification of tag groups in different scenes. A considerable number of experiments illustrate that the fusion algorithm can significantly improve recognition accuracy. Combined with the reading distance, the research presented in this paper can more accurately optimize the three-dimensional structure of the tag group, improve the reading performance of the tag group, and avoid the interference and collision of tags in the communication channel. Compared with the previous template matching algorithm, the tag group recognition ability put forward in this paper is improved by at least 13.9%, and its reading performance is improved by at least 6.2% as shown in many experiments.