This paper presents studies on a capacitive incremental displacement microsensor particularly for micro/nanopositioning applications. An incremental capacitive microsensor is capable of achieving large-scale, high-precision X–Y linear positioning; however, some inevitable static errors and dynamic disturbances in reality affect the linearity of the X–Y signal in the form of roll, yaw, and pitch movements. To realize high-precision X–Y linear positioning, a symmetrical sensor modeling scheme and a novel signal processing scheme are developed to compensate for signal nonlinearity caused by rotational disturbances. At the same time, roll, yaw, and pitch signals are decoupled from X–Y linear signals for possible feedback control purposes. A printed circuit board microsensor prototype for testing is constructed with a design featuring a 20 mm linear stroke, a 2 mm electrode pitch, and a 0.5 mm gap distance. The measured X–Y signal nonlinearity is decreased to 0.5% with a 4 mm stroke, while signal errors of rotational disturbances are no larger than 0.01°. The feasibility of a five-dimensional displacement measurement, including a large stroke, the high-precision acquisition of X–Y linear displacement, and roll, yaw, and pitch movements, is experimentally validated.