Given the role played by the historical and extensive coverage of sea ice concentration (SIC) observations in reconstructing the long‐term variability of Antarctic sea ice, and the limited attention given to model‐dependent parameters in current sea ice data assimilation studies, this study focuses on enhancing the performance of the Data Assimilation System for the Southern Ocean in assimilating SIC through optimizing the localization and observation error estimate, and two assimilation experiments were conducted from 1979 to 2018. By comparing the results with the sea ice extent of the Southern Ocean and the sea ice thickness in the Weddell Sea, it becomes evident that the experiment with optimizations outperforms that without optimizations due to achieving more reasonable error estimates. Investigating uncertainties of the sea ice volume anomaly modeling reveals the importance of the sea ice‐ocean interaction in the SIC assimilation, implying the necessity of assimilating more oceanic and sea‐ice observations.