With the advancement of computer hardware technology and multi-channel interaction techniques, olfaction, as a novel medium for acquiring and transmitting information, has begun to demonstrate substantial potential for development and research in the field of Human-Computer Interaction (HCI). Particularly in the context of future applications in Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR), its advantages have become increasingly prominent. By reviewing, summarizing, and analyzing the progress in relevant research, the work aims to provide reference for the future development path of this technology, striving for a more scientifically rigorous, naturally fluent, and highly precise virtual olfactory interaction experience. Through literature studies and case analyses, the perceptual foundation of olfactory display technology was elucidated and its fundamental concepts, constituent elements, developmental journey, key technologies, and evaluation methods were sorted out. As an emerging technology, olfactory display technology has gradually integrated into various domains of people's lives, offering diverse perceptual information and accelerating the potential dimensions and applications of multi-channel sensory technology. However, the current understanding of olfaction is in its nascent stage, and the interactive experience of virtual olfaction remains relatively low in fidelity and rough in nature. Predominant issues revolve around insufficient knowledge of odors, unwieldy odor release devices, limited accessibility of olfactory display technology, and low reproducibility. It is concluded that olfactory display technology has great development and research potential in the future in the fields of multidimensional odor data establishment, universality and standardization of odor release technology, systematic evaluation mechanism, safety and ethics.