The petition was delivered on behalf of local residents by shopkeepers David McConnachie and Gary Saunders.
At HCC's full council meeting on November 27, Mr McConnachie and Mr Saunders pressed council members to act, arguing that the current parking policy is directly harming the town's economy.
Speaking on behalf of the local shopkeepers, Mr McConnachie said: "Residents care deeply about the future of our town, a place that has served generations, the beating heart of the community.
"Since the removal of the one-hour parking, we've witnessed a dramatic and devastating decline in trade."
Mr McConnachie estimated a drop of at least 30 per cent in business this year. He said the new parking fees and time limits have discouraged people from making quick visits, with many now saying "it simply isn't worth it."
He added: "What used to be a bustling flow of local people has turned into a slow trickle.
"Footfall has dropped. The consequences have been impossible to ignore. We've lost many loved shops recently. Each one of this close represents jobs lost, families affected and communities' spaces gone.
"Our high street is fitting for its life. Today people tell us they actively avoid our high street and we feel bad. Not because they don't want to support local business, it is because the parking policy encourages them away.
"We are not asking for something extravagant, we are asking for the restoration of the simple and effective proven measure that supports local trade.
"One-hour free parking is not just convenient, it's a lifeline. We still have time to turn this around. Listen to us trades, to the community and help us safe our high street by reinstating the one-hour free parking."
Mr Saunders has warned of a 30-50 per cent drop in footfall for all shops on the High Street since the meters were installed.
He reminded council members that the scheme was meant to be rolled out in other locations such as Ringwood, New Milton, Hythe or Romsey, but only in Lymington were they installed.
"We are the only town to get these meters."
Responding to the concerns, cabinet member for highways, Cllr Lulu Bowerman said: "I understand your concerns. Be assured that we are working to evaluate the impact on parking charges and make any appropriate changes."
The controversy dates back several years. Originally, parking on the High Street included a one-hour free period.
But after HCC reclaimed responsibility for on-street parking, the authority moved ahead with pay-and-display meters.
Under the current arrangement, there is a 20-minute free parking period, but even for these brief visits, motorists must obtain a ticket from the machine.
After that, charges start: £1.50 for an hour, £3.10 for two hours (the maximum stay).