An inductive coded lock system includes an inductive lock mechanism, and a conductive key/target. The inductive lock mechanism includes multiple inductor coils and sensor circuitry. Each inductor coil is operable to project a magnetic field defining a sensing area proximate to the inductor/coil, the inductor coils being spatially arranged to define a key/target sensing area incorporating each inductor coil sensing area. The sensor circuitry drives inductor coils, and measures sensor response (such as with an inductance comparator) to a key/target inserted within the key/target sensing area, including detecting an unlock condition corresponding to a pre-defined coded lock pattern. The key/target includes active and inactive areas (such as conductive/nonconductive) corresponding spatially to the sensing areas in the key target sensing area, the active and inactive areas arranged in a pre-defined coded key pattern corresponding to the pre-defined coded lock pattern. The coded lock and key patterns can be binary coded.