An in situ robust ground settlement (IR-GS) sensor was designed to meet the requirements for oil-tank health monitoring by combining a low-coherent fiber-optic interferometry with a fine mechanical spline shaft. A floating mirror was mounted on the shaft and moved up and down along with the liquid surface. The liquid-contained chambers were hydraulically connected at the bottom by using a liquid-filled tube. The liquid level inside each chamber was initially at equal level. One of the chambers was fixed on a steady ground point, which was chosen in a surveying point of view and served as a reference. The others were distributed around an oil tank and separated the tank's perimeter into eight equal spans. Thereby, the health states of the oil tank were able to be evaluated based on these sensing results. Interrogation of the sensor was employed via a low-coherent fiber-optic Michelson interferometer. One path of the interferometer was composed by the floating mirror, whereupon a light was reflected. The other path was projected to a mirror that was fixed on a stepping motor. Therefore, the corresponding liquid level could be optically surveyed. Differential settlements between each chamber and the reference served as a measure of how much the liquid level was changed from its initials. Experimental tests demonstrated that this IR-GS design, with the optimized shape and weights of the spline shaft, could overcome the error caused by dust, hysteresis, temperature, etc. and meet the practical requirement in the accuracy of ±0.5mm. A practical application was carried out, and its long-term stability has been proved.