In order to obtain patterns of code disc and metrology grating which are the core components of optical shaft encoder,photolithography shutter is usually used to control exposure. But perforated film as photolithography shutter has many disadvantages such as taking too long time to perforate,easily making wrong code. A mathematical model between resist property,luminous efficiency and exposure has been established by deducing their relations for avoiding the disadvantages. The theory of using liquid crystal light valve replacing proforated film is proposed. Based on operating principles of liquid crystal light valve and control theories of photolithography shutter,the control circuit of liquid crystal light valve arrays has been designed according to theirs control principles. The photolithographic experiments show that,the patterns of code disc are good,the edges of lines are vertical. It indicates that the liquid crystal light valve arrays as photolithography shutter can control exposure and light passing accords with the intending requires. It proves that using liquid crystal light valve arrays replacing perforated film as photolithography shutter is feasible completely.