[proofplan]
We identify the tangent space to deformations with $H^1(C,T_C)$ and compute the cotangent map of the period map as the multiplication map $\operatorname{Sym}^2H^0(C,K_C)\to H^0(C,K_C^{\otimes 2})$. Since duality turns injectivity of the differential into surjectivity of this multiplication map, the theorem becomes a statement about quadratic products of holomorphic differentials. The non-hyperelliptic case is exactly Max Noether's theorem for canonical curves. The hyperelliptic case is computed from the double cover $C\to \mathbb{P}^1$: products of canonical forms land only in the invariant summand of $H^0(C,K_C^{\otimes 2})$, which is all of it in genus $2$ but has positive codimension for genus at least $3$.
[/proofplan]
[step:Identify the cotangent map with multiplication of canonical forms]
Let $K_C$ denote the holomorphic cotangent bundle of $C$, and let $T_C$ denote the holomorphic tangent bundle. The Kodaira-Spencer identification gives
\begin{align*}
T_{[C]}\mathcal{M}\cong H^1(C,T_C).
\end{align*}
For curves, the infinitesimal period map is the map whose action on a deformation class $\xi\in H^1(C,T_C)$ sends a holomorphic one-form $\omega\in H^0(C,K_C)$ to the class obtained by contracting $\xi$ with $\omega$ in $H^1(C,\mathcal O_C)$. Equivalently, its dual map is
\begin{align*}
\mu:\operatorname{Sym}^2H^0(C,K_C)\longrightarrow H^0(C,K_C^{\otimes 2}),
\end{align*}
where $\mu$ is defined on pure symmetric tensors by
\begin{align*}
\mu(\omega\eta)=\omega\otimes\eta
\end{align*}
for $\omega,\eta\in H^0(C,K_C)$, using the natural multiplication of sections of the line bundle $K_C$.
We justify the duality statement explicitly. Serre duality for the compact Riemann surface $C$ gives a perfect pairing
\begin{align*}
H^1(C,T_C)\times H^0(C,K_C^{\otimes 2})\longrightarrow \mathbb C,
\end{align*}
because $T_C^*\otimes K_C\cong K_C^{\otimes 2}$. It also gives a perfect pairing
\begin{align*}
H^1(C,\mathcal O_C)\times H^0(C,K_C)\longrightarrow \mathbb C.
\end{align*}
Under these pairings, the [bilinear form](/page/Bilinear%20Form) associated to the differential of the period map is
\begin{align*}
(\xi,\omega,\eta)\longmapsto \langle \xi,\omega\eta\rangle,
\end{align*}
where $\xi\in H^1(C,T_C)$ and $\omega,\eta\in H^0(C,K_C)$. Therefore the transpose of $d\mathcal P_{[C]}$ is precisely $\mu$.
Consequently,
\begin{align*}
d\mathcal P_{[C]}\text{ is injective}\quad \iff \quad \mu\text{ is surjective}.
\end{align*}
[guided]
The period map records the Hodge structure on $H^1(C,\mathbb C)$, so its first derivative is controlled by how first-order deformations move holomorphic one-forms. The deformation tangent space is
\begin{align*}
T_{[C]}\mathcal{M}\cong H^1(C,T_C),
\end{align*}
by the [Kodaira-Spencer correspondence](/theorems/9117).
For a class $\xi\in H^1(C,T_C)$ and a holomorphic one-form $\omega\in H^0(C,K_C)$, the first variation of $\omega$ is obtained by contracting the tangent-vector part of $\xi$ with $\omega$. This gives a class in $H^1(C,\mathcal O_C)$. Thus the infinitesimal period map can be viewed as
\begin{align*}
d\mathcal P_{[C]}:H^1(C,T_C)\longrightarrow \operatorname{Hom}(H^0(C,K_C),H^1(C,\mathcal O_C)).
\end{align*}
To compute injectivity, it is better to dualize. Serre duality gives a perfect pairing
\begin{align*}
H^1(C,T_C)\times H^0(C,T_C^*\otimes K_C)\longrightarrow \mathbb C.
\end{align*}
Since $T_C^*\cong K_C$, this target is
\begin{align*}
H^0(C,T_C^*\otimes K_C)=H^0(C,K_C^{\otimes 2}).
\end{align*}
Serre duality also gives a perfect pairing
\begin{align*}
H^1(C,\mathcal O_C)\times H^0(C,K_C)\longrightarrow \mathbb C.
\end{align*}
Under these two pairings, evaluating the dual of the infinitesimal period map on two holomorphic one-forms $\omega,\eta\in H^0(C,K_C)$ gives the quadratic differential $\omega\eta\in H^0(C,K_C^{\otimes 2})$. Thus the cotangent map is the multiplication map
\begin{align*}
\mu:\operatorname{Sym}^2H^0(C,K_C)\longrightarrow H^0(C,K_C^{\otimes 2}).
\end{align*}
The passage from injectivity to surjectivity is ordinary finite-dimensional linear algebra: a [linear map](/page/Linear%20Map) between finite-dimensional complex vector spaces is injective if and only if its dual map is surjective. Hence proving the theorem is equivalent to determining exactly when $\mu$ is surjective.
[/guided]
[/step]
[step:Apply Max Noether to the non-hyperelliptic case]
Assume $g\ge 3$ and $C$ is non-hyperelliptic. Max Noether's theorem for canonical curves states that, for a non-hyperelliptic compact Riemann surface of genus at least $3$, the canonical ring
\begin{align*}
\bigoplus_{m=0}^{\infty}H^0(C,K_C^{\otimes m})
\end{align*}
is generated in degree $1$. In degree $2$, this says precisely that
\begin{align*}
\mu:\operatorname{Sym}^2H^0(C,K_C)\longrightarrow H^0(C,K_C^{\otimes 2})
\end{align*}
is surjective. By the cotangent identification above, $d\mathcal P_{[C]}$ is injective.
[/step]
[step:Compute canonical sections on a hyperelliptic curve]
Assume now that $C$ is hyperelliptic of genus $g\ge 2$. Let
\begin{align*}
\pi:C\longrightarrow \mathbb P^1
\end{align*}
be the hyperelliptic double cover, and let $\iota:C\to C$ be the hyperelliptic involution. Let $L$ be the line bundle $\mathcal O_{\mathbb P^1}(g+1)$ associated with the double cover, so that
\begin{align*}
\pi_*\mathcal O_C\cong \mathcal O_{\mathbb P^1}\oplus L^{-1}
\end{align*}
and the second summand is the $(-1)$-eigensheaf for $\iota$. The canonical bundle formula for the double cover gives
\begin{align*}
K_C\cong \pi^*(K_{\mathbb P^1}\otimes L)\cong \pi^*\mathcal O_{\mathbb P^1}(g-1).
\end{align*}
Therefore the projection formula gives
\begin{align*}
H^0(C,K_C)\cong H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(g-1))\oplus H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(-2)).
\end{align*}
Since $H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(-2))=0$, every holomorphic one-form on $C$ lies in the same eigenspace for the hyperelliptic involution. Thus every product of two holomorphic one-forms lies in the invariant summand of $H^0(C,K_C^{\otimes 2})$.
For the square of the canonical bundle, the same computation gives
\begin{align*}
K_C^{\otimes 2}\cong \pi^*\mathcal O_{\mathbb P^1}(2g-2).
\end{align*}
Hence
\begin{align*}
H^0(C,K_C^{\otimes 2})\cong H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(2g-2))\oplus H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(g-3)).
\end{align*}
The first summand is invariant under $\iota$, and the second summand is anti-invariant.
[guided]
The hyperelliptic curve comes with a degree-two map
\begin{align*}
\pi:C\longrightarrow \mathbb P^1
\end{align*}
and an involution $\iota:C\to C$ exchanging the two sheets. The structure sheaf of $C$ decomposes after pushing forward to $\mathbb P^1$:
\begin{align*}
\pi_*\mathcal O_C\cong \mathcal O_{\mathbb P^1}\oplus L^{-1},
\end{align*}
where $L\cong\mathcal O_{\mathbb P^1}(g+1)$. The summand $\mathcal O_{\mathbb P^1}$ consists of invariant functions, while $L^{-1}$ consists of anti-invariant functions.
The canonical bundle formula for this double cover is
\begin{align*}
K_C\cong \pi^*(K_{\mathbb P^1}\otimes L).
\end{align*}
Since $K_{\mathbb P^1}\cong\mathcal O_{\mathbb P^1}(-2)$ and $L\cong\mathcal O_{\mathbb P^1}(g+1)$, we get
\begin{align*}
K_C\cong \pi^*\mathcal O_{\mathbb P^1}(g-1).
\end{align*}
Now apply the projection formula to the line bundle $\mathcal O_{\mathbb P^1}(g-1)$. It gives
\begin{align*}
H^0(C,K_C)\cong H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(g-1))\oplus H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(-2)).
\end{align*}
The second summand vanishes because $\mathcal O_{\mathbb P^1}(-2)$ has negative degree. Therefore all holomorphic one-forms on $C$ come from the first summand. In particular, when two such forms are multiplied, their product is invariant under the hyperelliptic involution.
For quadratic differentials, the same method gives
\begin{align*}
K_C^{\otimes 2}\cong \pi^*\mathcal O_{\mathbb P^1}(2g-2).
\end{align*}
Using the projection formula again,
\begin{align*}
H^0(C,K_C^{\otimes 2})\cong H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(2g-2))\oplus H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(g-3)).
\end{align*}
The first summand is invariant and the second is anti-invariant. This decomposition is the decisive point: multiplication of holomorphic one-forms can only reach the invariant part, so injectivity can fail exactly when the anti-invariant part is nonzero.
[/guided]
[/step]
[step:Show the hyperelliptic multiplication map has cokernel of dimension $g-2$]
Under the identification
\begin{align*}
H^0(C,K_C)\cong H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(g-1)),
\end{align*}
the multiplication map $\mu$ becomes the ordinary polynomial multiplication map
\begin{align*}
\operatorname{Sym}^2H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(g-1))\longrightarrow H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(2g-2))
\end{align*}
on the invariant summand of $H^0(C,K_C^{\otimes 2})$. This map is surjective because every homogeneous polynomial of degree $2g-2$ in two variables is a linear combination of products of homogeneous polynomials of degree $g-1$.
Thus
\begin{align*}
\operatorname{im}\mu=H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(2g-2))
\end{align*}
inside the invariant summand. The cokernel is therefore
\begin{align*}
H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(g-3)).
\end{align*}
Since
\begin{align*}
\dim_{\mathbb C}H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(d))=d+1
\end{align*}
for $d\ge 0$, this cokernel has dimension
\begin{align*}
\dim_{\mathbb C}H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(g-3))=g-2.
\end{align*}
For $g\ge 3$, this dimension is positive, so $\mu$ is not surjective. By duality, $d\mathcal P_{[C]}$ is not injective.
[/step]
[step:Check genus $2$ separately]
Assume $g=2$. The hyperelliptic computation above gives
\begin{align*}
H^0(C,K_C)\cong H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(1))
\end{align*}
and
\begin{align*}
H^0(C,K_C^{\otimes 2})\cong H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(2))\oplus H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(-1)).
\end{align*}
The second summand vanishes, so
\begin{align*}
H^0(C,K_C^{\otimes 2})\cong H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(2)).
\end{align*}
The multiplication map is
\begin{align*}
\operatorname{Sym}^2H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(1))\longrightarrow H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(2)).
\end{align*}
If $u,v$ are homogeneous coordinates on $\mathbb P^1$, then $u^2$, $uv$, and $v^2$ form a basis of $H^0(\mathbb P^1,\mathcal O_{\mathbb P^1}(2))$, and each is a product of two sections of $\mathcal O_{\mathbb P^1}(1)$. Hence $\mu$ is surjective. Therefore $d\mathcal P_{[C]}$ is injective in genus $2$.
[/step]
[step:Combine the three cases]
If $g\ge 3$ and $C$ is non-hyperelliptic, Max Noether's theorem makes $\mu$ surjective, so the differential of the period map is injective. If $g=2$, the explicit hyperelliptic computation also makes $\mu$ surjective, so the differential is injective. If $g\ge 3$ and $C$ is hyperelliptic, the cokernel of $\mu$ has dimension $g-2>0$, so $\mu$ is not surjective and the differential is not injective. These are exactly the alternatives stated in the theorem.
[/step]