Systems and methods that use a passive differential optical sensor to measure the level of liquid in a reservoir (e.g., a fuel tank or other storage container). More specifically, the passive differential optical liquid level sensor solves the problem of common-mode intensity variations by employing three optical fibers that will be disposed vertically in the reservoir. The system comprises a side-emitting optical fiber having one end optically coupled to an optical source, a side-receiving optical fiber optically coupled to a first optical detector, and a total internal reflection optical fiber having one end optically coupled to the other end of the side-emitting optical fiber and another end optically coupled to a second optical detector. A computer or processor is configured to perform differential processing of the detected light and then determine the liquid level based on the differential processing results.