Online high-precision measurement of tip clearance parameters between the labyrinth seals and the casing and axial movement parameters of labyrinth seals are the key to ensuring the safe operation and aerodynamic efficiency of turbine engines. The traditional capacitive tip clearance measurement system is sensitive to noise and cannot measure the axial movement parameters of labyrinth seals at the same time. Therefore, a “herringbone”-shaped capacitive sensor is designed, and a method for extracting the parameters of labyrinth seals’ tip clearance and axial movement parameters based on spectrum estimation is proposed. The measurement model of the herringbone capacitance sensor is established. The amplitude spectrum characteristics of the measured signal are simulated and analyzed, and the optimal spectrum line is determined. A signal processing method of adaptive frequency domain filtering based on estimation of rotation speed and signal characteristic frequency, full-period and uniform angle sampling, amplitude spectrum estimation, and binary polynomial surface fitting is proposed to realize the dynamic measurement of blade tip clearance parameters and axial movement parameters. The experimental platform for testing tip clearance parameters and axial movement parameters of a labyrinth seal is established in the laboratory environment. The calibration and measurement experiments are completed. Experimental results show that when labyrinth seals work below 1 900 r/ min, the measurement accuracy of blade tip clearance and axial movement is 18 μm and 30 μm within the measurement range of 0. 5~ 1. 5 mm blade tip clearance and ±1 mm axial movement.