The practice in the reform for overall urban and rural development requires us to continuously make theoretical innovation and expanding. The urban and rural relation theory of Marx and Engels predicts the direction for overall urban and rural development, which is to narrow the labor production efficiency gap between agriculture and industry and to realize the transformation from traditional agriculture to modern agriculture. In order to promote labor production efficiency, firstly, rural surplus labors should be transferred, the dual economic theory of Lewis has important guidance and referential significance on this, and secondly, value-added of agriculture should be increased to develop modern agriculture, in this field, the thoughts of Schultz on restructuring traditional agriculture by investment in peasants based on human capital theory provide feasibility path for us. Peasants obtain sufficient knowledge, which is very important to develop modern agriculture or the transfer of rural surplus labors and is the key to raising agricultural labor production efficiency. Currently, moreover, the distribution of knowledge and information between urban and rural areas in China is not even, so China should consolidate education function and information spreading function of masses media and use the equilibrium development of masses media between urban and rural areas to reach balanced distribution of knowledge and information between urban and rural areas so as to realize coordinated development between urban and rural areas.