Studies that use satellite sensor measurements to determine the atmospheric composition require the conversion of measured radiances to concentration profiles. An important step in this process, is the correct treatment of radiative transfer. In several cases however, atmospheric species experience large and/or rapid changes in their distribution—at the time of measurements— which if neglected result in the inadequate treatment of radiative transfer and the subsequent inaccuracy of inversion algorithms. Parameterizing these changes is a way to treat the problem efficiently and a parameterization scheme for the temporal and spatial variability of nitric oxide is proposed in this Letter. The scheme is integrated in the inversion algorithm for the retrieval of the concentration of nitric oxide from satellite sensor occultation measurements and the performance of the algorithm is found to yield satisfactory results.