An absolute encoder based on vision system nanoGPS OxyO was developed by HORIBA France. This encoder provides three types of position information, namely, two inplane co-ordinates and inplane angular orientation. This paper focuses on the characterization of its angular performance. To this aim, the nanoGPS OxyO system was compared with the national angle standard of the National Metrology Institute of Italy (INRIM) that had evaluated accuracy of about 0.1 µrad. The effect of image size and illumination conditions on angular measurements was studied. Precision better than 10 µrad and accuracy better than 63 µrad over 2π rotation were demonstrated. Moreover, the application of nanoGPS OxyO to the characterization of rotation bearing is presented. Small deviations from pure rotational behavior were evidenced that would have not been possible using laser interferometers. As a consequence of its accuracy and versatility, the nanoGPS OxyO encoder is expected to be useful for laboratory experiments and quality-control tasks.