I. Introduction
Rotary optical encoders are the most widely used sensors for precision angular positioning in modern production engineering [1]. More than 90% of rotary encoders used in precision machine tools are estimated to be absolute type. The current rapid development of emerging areas, such as small intelligent robots, intelligent manufacturing, 3D printing, and drones, poses considerable challenges for high precision, miniaturized, and inexpensive absolute encoders [2], [3].