Localization of mobile targets is a fundamental problem across various domains. One-way ranging-based downlink localization has gained significant attention due to its ability to support an unlimited number of targets and enable autonomous navigation by performing localization at the target side. Time-difference-of-arrival (TDOA)-based methods are particularly advantageous as they obviate the need for target-anchor synchronization, unlike time-of-arrival (TOA)-based approaches. However, existing TDOA estimation methods inherently rely on the quasi-static assumption (QSA), which assumes that targets remain stationary during the measurement period, thereby limiting their applicability in dynamic environments. In this paper, we propose a novel instantaneous TDOA estimation method for dynamic environments, termed Parameterized TDOA (P-TDOA). We first characterize the nonlinear, time-varying TDOA measurements using polynomial models and construct a system of linear equations for the model parameters through dedicated transformations, employing a novel successive time difference strategy (STDS). Subsequently, we solve the parameters with a weighted least squares (WLS) solution, thereby obtaining instantaneous TDOA estimates. Furthermore, we develop a mobile target localization approach that leverages instantaneous TDOA estimates from multiple anchor pairs at the same instant. Theoretical analysis shows that our proposed method can approach the Cramer-Rao lower bound (CRLB) of instantaneous TDOA estimation and localization in concurrent TOA scenarios, despite actual TOA measurements being obtained sequentially. Extensive numerical simulations validate our theoretical analysis and demonstrate the effectiveness of the proposed method, highlighting its superiority over state-of-the-art approaches across various scenarios.