The displacement measurement based on single mode in HeNe laser with the birefringence optical feedback can output two feedback signals. The fringe phase difference is not affected by the feedback external cavity length, so it has great potential in the development of large range and high resolution displacement measurement system. Phenomenon of birefringence optical feedback was researched and displacement measurement system of high-performance was developed. The frequency stability and anti-jamming capability of the displacement measurement system were improved by combining the frequency stabilization technique and feedback cavity scanning technique. The stabilized frequency fluctuation was less than 10-7. The zero drift, beat frequency and comparison of the system were tested. Its range was more than 200 mm, the resolution is 15.82 nm, the linearity is better than 2.3×10-7. The main error sources of the system were analyzed, and the total measurement error was 0.21 μm. The displacement sensor features compact configuration, nanometer-scale resolution, good linearity and large measurement range, and has broad application prospects in industry.