In order to overcome the shortcomings of the traditional magnetic absolute linear displacement sensors in which cables affect the flexibility and measurement range in linear motor transmission systems, this paper proposes a novel cable-free moving magnetic grid-type long-range absolute displacement sensor. The sensor consists of a magnetic grid and a signal acquisition board. The magnetic grid is a moving component that contains two rows of permanent magnet arrays, one for relative displacement measurement and the other for the displacement interval code. The signal acquisition board is a fixed component that uses n groups of two-row Hall sensor arrays for continuous absolute displacement measurement. The principle of the sensor using the 2D magnetic field signal for the relative displacement measurement is analyzed, and a measurement method based on Hall sensor arrays for coding and absolute displacement detection over n cycles is proposed. Finally, a sensor prototype is fabricated and the experiments are performed. The experimental results show that the measurement resolution of the sensor is 5 μm, and the measurement accuracy is ±14.8 μm within the measurement range of 0–98.3 mm. The proposed sensor can realize continuous absolute displacement measurement over multiple cycles without cable binding.