This paper proposes a novel parallel coding transmission strategy and an iterative detection and decoding receiver signal processing technique for orthogonal delay-Doppler division multiplexing (ODDM) modulation. Specifically, the proposed approach employs a parallel channel encoding (PCE) scheme that consists of multiple short-length codewords for each delay-Doppler multicarrier (DDMC) symbol. Building upon such a PCE transmission framework, we then introduce an iterative detection and decoding algorithm incorporating a successive decoding feedback (SDF) technique, which enables instant information exchange between the detector and decoder for each DDMC symbol. To characterize the error performance of the proposed scheme, we perform density evolution analysis considering the finite blocklength effects. Our analysis results, coupled with extensive simulations, demonstrate that the proposed PCE scheme with the SDF algorithm not only showcases a better overall performance but also requires much less decoding complexity to implement, compared to the conventional benchmark scheme that relies on a single long channel code for coding the entire ODDM frame.