The ellipticity of the spot caused by laser jitter has a significant effect on the measurement accuracy of the traditional laser triangulation method. In order to overcome the influence of laser characteristics on measurement and improve the accuracy of displacement measurement, this paper proposes a measurement model for a laser displacement sensor based on a cylindrical annular reflector. A physical prototype is designed through parameter optimization using NSGA-II, and a two-step detection algorithm is proposed for the imaging ring of the prototype. The algorithm performs contour thinning after rough positioning of the imaging annular ring, and then performs precise detection. Through physical experiments, it is verified that the repeatability error of this method can reach below 0.02%, and the accuracy is significantly improved compared to traditional laser triangulation displacement sensors. Meanwhile, the measurement results of displacement show linearity. The optical path design of this sensor is simpler than the previously proposed rotational symmetrical laser triangulation displacement sensor, which has good application prospects.