Abstract: An optical encoding means and device for magnifying, condensing, and encoding displacement information relative to an compound grid image sensed by a Photo Sensor Array. The device comprises a specific Grid Pad defined by vertical-horizontal coordinate lines along a plane and in a uniform color. The coordinate lines on the Grid Pad are magnified optically, and are then condensed along a horizontal and vertical axis by means of condenser lenses or reflective mirrors. The condensed image is projected on vertically and horizontally arranged Photo Sensors, and X-axial and Y-axial displacement information is generated by the Photo Sensor Array.