A binocular display device or module includes a pair of display panels that are custom aligned with respective viewing optics. The binocular display device has a first lens assembly for viewing the first display panel and a second lens assembly for viewing the second display panel. Alignment fixtures within the binocular display device are used to physically align and fix the optics with the display panels using an alignment system. The alignment system includes a camera system for viewing the first display panel of the binocular display device through the first lens assembly, and the second display panel through the second lens assembly. Display panel alignment indicia can be located on the first and second display panels. A viewing screen system can be included for viewing images of the display panel alignment indicia on the first and second display panels which are provided by the camera system. The viewing screen system can include baseline indicia, whereby the first and second display panels can be adjusted into an alignment position for binocular viewing by adjusting positions of the display panels until the images of the display panel indicia shown on the viewing screen system are located relative to the baseline indicia in a manner that indicates acceptable alignment. Through proper alignment of the binocular display module, a head-mountable display system can be manufactured that is lightweight, comfortable to wear, and easy to carry.