Although craft and home brewing have fueled the beer renaissance in the last decade, affordable, reliable, and simple sensing equipment for such breweries is limited. Thus, this manuscript is motivated by the improvement of the bottle-filling process in such settings with the objective of developing a liquid level sensor based on a novel application of the known optical phenomena of light refraction. Based on the different refraction indices of liquid and air (and critical angle based on Snell’s law), along with a novel LED light source positioning, a reliable liquid level sensor system was built with the aid of an embedded microcontroller. The used operating principle is general and can be used in applications other than the proposed one. The proposed method was extensively tested in a laboratory and limited production settings with a speed of 7 Hz using different liquids and container shapes. It was compared for accuracy to other sensing principles such as ultrasound, infrared, and time-of-flight. It demonstrated comparable or better performance with a height error ranging between −0.1534 mm in static conditions and 1.608 mm for realistic dynamic conditions and good repeatability on the production line with a 4.3 mm standard deviation of the mean.