A planar motor rotor displacement measuring device and its measuring method are provided. The motor is a moving-coil type planar motor. The device comprises probes, two sets of sine sensors, two sets of cosine sensors, a signal lead wire and a signal processing circuit. The method is arranging two sets of magnetic flux density sensors within a magnetic field pitch τ along two vertical movement directions in the rotor located in the sine magnetic field area. Sampled signals of the four sets of sensors are respectively processed with a frequency multiplication operation, four subdivision signals are obtained, the zero-crossing points of the four subdivision signals are detected, and then two sets of orthogonal pulse signals are generated. The pulse number of the orthogonal pulse signals is counted, and phase difference of the two sets of orthogonal pulse signals is respectively detected.