Optical-electronic leveling devices using a staff with bar codes are discussed. The reading of the staff is taken along its longitudinal axis; the distance to the staff and its vertical position are determined by the readings of a translational transducer connected to the optical system during its focusing on the bars of the staff. The height is determined according to coded signals of the image of the bars transferred into an array of photoelectric cells in the instrument and processed by a microprocessor to the height values. Three main types of image processing are used in various types of digital levels: a correlation method, a geometric method, and a phase method. The correlation functions of measuring and reference codes in the electronic level are calculated in this paper, showing possible errors of height determination. The information obtained during the measurement shows the relationship between the information entropy received from different values of readings from the staff. A new digital level design is proposed, simplifying the design of the instrument and the staff as well. The principal correlation and error determination equations are given, and diagrams of the new design are included.