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.