In this paper, for the first time a new type of narrow-range angle sensor based on inductive effect is introduced and studied. A prototype steering angle sensor is also designed and fabricated to compare the characteristics of the four methods from the viewpoints of sensitivity, linearity and resolution, angle range of the sensor output. This sensor is designed to be sensitive to very small resolution in angle with detected range is scaled down to about 12bit. An intensive investigation has been carried out to study the behaviors of the sensor and optimize its performance by signal compensation. These behaviors are discussed and explained using an analytical and experimental testings. Moreover, Application possibility of the sensor are proposed and a demo device based on the sensor is presented.