The results of the development and investigation of the modulation characteristics of a coaxial liquid crystal modulator are presented. The active part of the modulator under investigation is implemented on the basis of a "cylindrical geometry". Specific design solutions of such a coaxial modulator are considered. It is shown that in the case under study, the modulation depth increases 2 or 3-fold as compared with conventional LC modulators and exeeds 50%, noise level becoming lower.