Ionospheric delay is one of the main errors in precise orbit determination (POD) of Gravity Recovery and Climate Experiment Follow-On (GRACE-FO) with satellite-borne GPS technique. Effective elimination or reduction of ionospheric delay can improve POD precision. For satellite-borne GPS dualfrequency data, the ionospheric-free linear combination is generally used to eliminate the first-order term, while igoring the influence of higher-order terms. To improve the POD precision of GRACE-FO, this paper presents an effective method to calculate higher-order ionospheric delay of GRACE-FO observation. Dualfrequency GPS receiver observation is used to calculate the total electron content on the signal propagation path. The magnetic field strength is calculated according to international geomagnetic reference field model, and the angle between the GPS signal propagation path and the geomagnetic field is calculated. Finally, the delays of second-order and third-order terms are calculated and introduced into GRACE-FO reduceddynamic POD. The effect of higher-order ionospheric delay on POD of GRACE-FO is analyzed in detail. The results show that the influence of ionospheric higher-order term on satellite-borne GPS observation is in centimeter level. The orbit precision of GRACE-FO can be improved by adding higher-order ionospheric delay, with improvement order of sub-millimeter level.