The plate P carries a mirror M. The mirror mount has two points resting in a fixed groove, F, and at the other end has a single point resting on the object whose displacement one is measuring. Raising the object through a distance L will tilt the mirror through an angle or L/d radians (approximately) but will turn the light beam through an angle 2.
Hence
Note that with the telescope nearly perpendicular to the scale at the beginning then y0 is close to the telescope, and the difference between two elongations ( L2 - L1) is very accurately given by
where yi is the scale reading. This relation holds so long as 2 is small enough that tan 2 2.