This paper first analyzes the characteristics of the Internet “connecting everything”, gives the logical starting point for the research of physical education theory based on the Internet, and puts forward three major strategies for the innovation of physical education theory in colleges and universities. Secondly, it constructs the framework of physical education theory innovation in colleges and universities based on teaching and learning and uses the teaching and learning optimization algorithm to describe the teaching and learning phases of teaching and simulate the learning process of students. Finally, 99 students in college R are used as research subjects for comparative analysis of learning interest and performance. The results show that after the experiment, the intensity of students’ learning interest increased from 85.63 to 93.15 in the Experiment 1 class and from 88.89 to 92.43 in the Experiment 2 class, and there was no significant difference between the two experimental classes with P>0.05, and there was a significant increase in the overall learning interest of the students. The data show that the innovation of physical education theory can enhance students’ learning interest, which improves students’ academic performance and provides data support for the development of physical education in colleges and universities.