This paper presents the optimization of an inductive displacement transducer or linear variable differential transformer (LVDT). The method integrates design software (SolidWorks 2023), simulation tools (COMSOL Multiphysics), and MATLAB. The optimization phase utilizes the non-dominated sorting genetic algorithm (NSGA)-II and -III to fine-tune the geometry configuration by adjusting six inner parameters corresponding to the dimension of the interior components of the LVDT, thus aiming to improve the overall performance of the device. The outcomes of this study reveal a significant achievement in LVDT enhancement. By employing the proposed methodology, the operational range of the LVDT was effectively doubled, extending it from its initial 8 (mm) to 16 (mm). This expansion in the operational range was achieved without compromising measurement accuracy, as all error values for the working range of 0–16 (mm) (NSGA-II with a maximum final relative error of 2.22% and NSGA-III with 2.44%) remained below the imposed 3% limit. This research introduces a new concept in LVDT optimization, capitalizing on the combined power of NSGA-II and NSGA-III algorithms. The integration of these advanced algorithms, along with the interconnection between design, simulation, and programming tools, distinguishes this work from conventional approaches. This study fulfilled its initial objectives and generated quantifiable results. It introduced novel internal configurations that substantially improved the LVDT’s performance. These achievements underscore the validity and potential of the proposed methodology in advancing LVDT technology, with promising implications for a wide range of engineering applications.