The single axis linear displacement measurement system of CMM is composed of grating ruler, servo motor and linear motion mechanism. Although the measuring accuracy of grating ruler is high, the accuracy of servo motor and linear motion mechanism is low. Therefore, the complex structure limits the measurement accuracy of the linear displacement measurement system. This paper introduces a novel linear displacement measurement system named magnetic levitation ruler. According to the working principle of grating ruler and the characteristics of magnetic levitation technology, the magnetic circuit design and structural design of magnetic levitation ruler are completed in this paper. The mover core of the magnetic levitation ruler is in the stable working magnetic field provided by the stator yoke. The horizontal control coil wound on the mover core can obtain more stable ampere force to improve the control accuracy of the mover core displacement. Therefore, the mover core can be moved in step mode, and the length of each step is fixed. Each step is the minimum scale of the magnetic levitation ruler. Therefore, the mover core can implement displacement measurement while moving in a linear motion. This paper analyzes the working principle of levitation, horizontal motion, and displacement measurement of magnetic levitation ruler, and determines the structural materials and parameters of magnetic levitation ruler with the help of finite element analysis software. The simulation results show that the levitation force of the magnetic levitation ruler is proportional to the current passing through the levitation coils, and the thrust of the horizontal control coil is less disturbed by the magnetic field. Compared with the linear displacement measurement system with rotational servo motor or permanent magnet synchronous linear motor as the core, the magnetic levitation ruler has stable magnetic field, strong controllability, high integration, and is easier to achieve high-precision control.