Current high-technology precision engineering sensors with submicrometer and even nanometer resolutions have become a necessity. Among the various types of noncontact high-resolution sensors, noninterferometric electro-optical (EO) sensors have their built-in preferential features. Earlier, we developed a triangulation principle based noncontact EO sensor with 0.01-μm resolution. By optimizing the design parameters of this EO sensor, the resolution has been enhanced by almost an order of magnitude. A piezoelectric transducer (PZT) mirror with 3 μm/kV excitation voltage has been used as the target surface. The details of experimental setup and the results arrived at are presented.