We present detailed investigations of the spectral dependencies of the transmission of a fiber optical loop mirror (FOLM) consisting of a coupler with output ports spliced at arbitrary angles to a high-birefringence (Hi-Bi) fiber. The application for dual-wavelength lasers is discussed.For this aim, the spectral dependence of the reflection is tuned by the temperature of the Hi-Bi fiber that allows a fine adjustment of the cavity loss for generated wavelengths. The ratio between maximum and minimum reflection can be adjusted by the twist angle of the fiber at the splices, which also provides useful possibilities for the adjustment of cavity losses. We used the twist and temperature variation of the Hi-Bi fiber to change the operation from single wavelength to stable dual-wavelength generation with either equal or unequal powers ofwavelengths.