E/I inductive position transducer sensing device operation
It's a displacement sensor known as an LVDT or Linear Variable Differential Transformer. When the core is centralised, the output would be zero. Displacement of the core in one direction would give a variable output, in phase with the excitation, whereas displacement in the other direction would give a variable output, out of phase with the excitation. A positive variable DC output in one direction and a negative one in the opposite direction would be the result of further processing.

The LVDT would be used as the feedback element in a closed loop, servo-controlled system to stop movement when a commanded position is reached.
The pilot would not physically interface with the LVDT. Any physical control movement he would make would only input a control voltage to the servo system.