Described is a method for designing individual stages of a multiple cascaded etalon TDC device to allow continuous thermo-optic tuning over a desired range without inducing incremental signal distortion due to uncontrolled and unpredictable dispersion of the TDC during tuning. This allows the signal to transmit without encountering periods of incremental distortion or dark spots. The method includes prior knowledge of each etalon stage, after full assembly, for spectral group delay profile as a function of temperature through modeling and/or characterization. Characterization can account for performance variations that are due to allowed manufacturing tolerances.