This research study presents the design and the high precision manufacture procedure of a fiber-optic displacement sensor. It is composed of two fiber-optic probes associated with a structure of a cones’ grating. The sensor is characterized by its ability to measure the linear displacement for an axis performing a helicoidal motion. This motion has been demonstrated on a high precision lathe; where the spindle provided the rotational motion, associated to a translational motion on the linear stage. This allowed to obtain the two simultaneous motions. The displacement of the translational stage is measured by the sensor in real time. Firstly, a highly precise geometric model of the reflector part for the sensor was developed. This model provided a specific geometry for the cones-assembled grating, which has been precisely manufactured. The geometric parameters and the surface characteristics of each step in the fabricated grating were both identified in situ on the lathe. The agreement between simulation and experimental results is excellent. The performances of the fiber-optic displacement sensor were identified in-situ on the lathe. The analysis of the voltage output signals from the two fiber-optic probes is used to measure the grating displacement. The unbalanced rotation due to non-centered axes was also characterized. The sensor provided a micrometric resolution, on a measurement range of more than one centimeter.