In microholographic data storage system (MDSS), compact recording is required to achieve high capacity.[1] When the data is recorded, neighbor monomer is also affected by reaction at the focal point.[2,3] This unintended process caused more monomer consumption and degradation of total capacity. To avoid this extra consumption of dynamic range, it is required to define the effective dynamic range for MDSS. In this paper, we experimentally investigate the relation between dynamic range consumption and micro grating formation. Dynamic range consumption was monitored by real time read-out system. Micrograting was recorded with different consumption ratio and compared by diffraction efficiency of track direction. Finally, we define suitable dynamic range for MDSS.