Wiring help for a DC LVDT?
I'll assume you've read through the datasheet. Here is a decent article on 4-20mA sensors and how to work with them. Notice that you need to provide something between 10 V and 28 V DC to operate this sensor, which is not going to be particularly "Arduino-friendly," but you can use an interface module to convert the sensor response to a 0-5V signal. You can also roll your own using a trans-impedance amplifier circuit, but I'm thinking you'll do better with off-the-shelf tech, maybe something like this, which integrates an Allegro ACS712 current sensor.

As for what to do with the chassis ground... I would connect it to your system ground (i.e. the Arduino ground).

And you'd wire it something like this:







simulate this circuit &ndash; Schematic created using CircuitLab