The displacement measurement system consists of an edge finder, a displacement drive system, and a grating. The system structure is complex. Magnetic levitation ruler can achieve both driving and detection functions simultaneously. The subdivision of the output signal of the magnetic levitation ruler can improve the detection accuracy of the magnetic levitation ruler. According to the characteristics of the magnetic levitation ruler, under the condition of constant magnetic induction intensity and horizontal control coil current, the displacement of the mover core is proportional to the square of the movement time. This article proposes a dynamic and nonlinear grid subdivision method based on the time-space conversion method. This article uses TDC-GP22 to set the length of the time grid, which can achieve 1000 times subdivision of the output signal of the magnetic levitation ruler. The subdivision of the output signal of the magnetic levitation ruler improves the measurement accuracy of the magnetic levitation ruler.