In this paper, groove gap waveguide technology is used to design a two-dimensional microwave displacement sensor. The unique feature of the gap waveguide is lack of electrical connection between the top and bottom plates, making it an ideal choice for displacement sensors. The proposed sensor uses two quarter-wavelength short-circuited stubs in series in the wave transmission path to generate transmission zeros in frequency response. The arrangement of these stubs allows displacement detection in two dimensions. This paper investigates the effect of inserting dielectric Teflon blades to shift the transmission zero point at the short-circuited stubs. The design ensures that the two frequency ranges corresponding to transmission zeros are sufficiently spaced apart, preventing overlap and providing enough frequency range to accommodate shifts in the transmission zero frequency. The sensor operates in the frequency range of 9.35 to 9.85 GHz for horizontal displacement and 10.1 to 11 GHz for vertical displacement. The sensitivity of the sensor is 65 MHz/mm.