By establishing a parametric electromagnetic simulation model for LVDT displacement sensors, the effects of radius and length of the moving core, primary winding coil turns, coil frame diameter, and inclined angles of secondary winding NO.2 on the nonlinearity, sensitivity, and zero displacement output voltage of LVDT displacement sensor were analyzed. Throng the simulation results, there are conclusions that parameters that have a significant impact on nonlinearity include the length of the moving core and the primary winding coil turns; the parameters that have a significant impact on sensitivity include the radius and the length of the moving core, and the primary winding coil turns, while the coil frame diameter has almost no effect on sensitivity; the parameters in this study have no significant impact on the zero displacement voltage. The analysis results provide a reference for the design and optimization of LVDT displacement sensors, and significantly improves the efficiency of LVDT design.