Here, we report an ultracompact angular displacement sensor based on the Talbot effect of optical microgratings. Periodic Talbot interference patterns were obtained behind an upper optical grating. By putting another grating within the Talbot region, the total transmission of the two-grating structure was found to be approximatively in a linear relationship with the relative pitch angle between the two gratings, which was explained by a transversal shift of the Talbot interference patterns. The influence of the grating parameters (e.g., the grating period, the number of grating lines and the gap between the two gratings) was also studied in both a simulation and an experiment, showing a tunable sensitivity and range by simply changing the grating parameters. A sensitivity of 0.19 mV/arcsec was experimentally obtained, leading to a relative sensitivity of 0.27%/arcsec within a linear range of ±396 arcsec with the 2 μm-period optical gratings. Benefitting from tunable properties and an ultracompact structure, we believe that the proposed sensor shows great potential in applications such as aviation, navigation, robotics and manufacturing engineering.