A novel low-nonlinearity Michelson microprobe fiber interferometer against light intensity disturbance for high-precision embedded displacement measurements is introduced. To analyze the influence of light intensity disturbance on the microprobe and measurement accuracy of the integrated fiber interferometer, an equivalent model of micro-probe sensing with the tilted target is established. The proposed PGC demodulation and nonlinearity correction method with simple principle helps avoid DC component varying with light intensity. The experiments show that residual displacement errors of the micro-probe fiber interferometer are reduced from 4.36 nm to 0.46 nm, thus allowing embedded displacement detection with sub-nanometer accuracy under low frequency light intensity disturbance.