Studying the nonlinear photoresponse of different materials, including III-V semiconductors, two-dimensional materials and many others, is attracting burgeoning interest in the terahertz (THz) field. Especially, developing field-effect transistor (FET)-based THz detectors with preferred nonlinear plasma-wave mechanisms in terms of high sensitivity, compactness and low cost is a high priority for advancing performance imaging or communication systems in daily life. However, as THz detectors continue to shrink in size, the impact of the hot-electron effect on device performance is impossible to ignore, and the physical process of THz conversion remains elusive. To reveal the underlying microscopic mechanisms, we have implemented drift-diffusion/hydrodynamic models via a self-consistent finite-element solution to understand the dynamics of carriers at the channel and the device structure dependence. By considering the hot-electron effect and doping dependence in our model, the competitive behavior between the nonlinear rectification and hot electron-induced photothermoelectric effect is clearly presented, and it is found that the optimized source doping concentrations can be utilized to reduce the hot-electron effect on the devices. Our results not only provide guidance for further device optimization but can also be extended to other novel electronic systems for studying THz nonlinear rectification.