A long-range, high-precision, and compact transverse displacement metrology method is of crucial importance in many research areas. Recent schemes using optical antennas are limited in efficiency and the range of measurement due to the small size of the antenna. Here, we demonstrated the first prototype polarization-encoded metasurface for ultrasensitive long-range transverse displacement metrology. The transverse displacement of the metasurface is encoded into the polarization direction of the outgoing light via the Pancharatnam-Berry phase, which can be read out directly according to the Malus law. We experimentally demonstrate nanometer displacement resolution with the uncertainty on the order of 100 picometers for a large measurement range of 200 micrometers with the total area of the metasurface being within 900 micrometers by 900 micrometers. The measurement range can be extended further using a larger metasurface. Our work opens new avenues of applying metasurfaces in the field of ultrasensitive optical transverse displacement metrology.