This paper presents a fiber optic, liquid level sensor system based on a pair of fiber Bragg gratings (FBGs), embedded in a circular silicone (PDMS—polydimethylsiloxane) rubber diaphragm. The measurement principles of this sensor, whose diaphragm structure is about 2.2 mm thick with 45 mm in diameter, are introduced. To analyze the linearity and sensitivity of the sensor, the diaphragm was subjected to compression tests as well as to liquid level loading and unloading. The force and liquid level increase tests showed that inserting two FBGs (0.99453 for force and 0.99163 for liquid level) in the diaphragm resulted in a system with greater linearity than that with individual FBGs. This occurred where FBG1 showed 0.97684 for force and 0.98848 for liquid level and FBG2 presented 0.89461 for force and 0.93408 for liquid level. However, the compression and water level decrease tests showed that the system (R2 = 0.97142) had greater linearity with FBG2 (0.94123) and lower linearity with FBG1 (0.98271). Temperature characterization was also performed, and we found that sensitivity to FBG1 temperature variation was 11.73 pm/°C and for FGB2 it was 10.29 pm/°C. Temperature sensitivity was improved for both FBGs when compared with uncoated FBGs with typical values of 9.75 pm/°C. Therefore, the proposed FBG-based sensor system is capable of simultaneous measurement of force and temperature in a compact diaphragm-embedded system.