To resolve the issues of poor consistency, large volume, and difficult integration for a multi-alternating light source, a precise linear displacement measurement method for micro-controlled phase shift is proposed based on the electric traveling wave synthetized from the standing wave of single-alternating light field, herein. The proposed method uses a single-alternating light source and the spatial modulation of a four-channel sinusoidal grid to obtain four-channel light intensity signals, resulting in two-channel standing wave signals with a strict phase difference of 90° by the micro-controlled phase-shifting circuit. A one-channel traveling wave signal is synthesized from the two-channel standing wave signals. Finally, the phase difference between the reference signal and the electric traveling wave signal is interpolated by a high-frequency clock pulse to realize a displacement measurement. In addition, the principle of micro-controlled phase-shifting measurement is analyzed, the theoretical and simulation models of phase-shifting accuracy and light-field distribution are established, and the causes of primary and secondary errors introduced by phase-shifting accuracy and light-field distribution of the sensor are clarified. Experimental results demonstrate an original measurement accuracy of ±0.26 μm for the prototype in a short period of 0.6 mm; after applying error correction and optimization, the resultant measurement accuracy is basically similar to that of the RENISHAW laser interferometer over a measurement range of 500 mm. This integrated structure and high-precision measurement results provide a solid foundation for future engineering applications of these sensors.