The invention relates to amethod and device for identifying the digital image displayed in the mechanical instrument window, suitale for the identification of figure for various mechanical instrument window. The method, based on the working principle of absolute encoder in the field of industrial sensor, applys the mechanical location identifying method to the field of identifying image, carry out the identification for the position of image to reach the identification for the content of image, and especially is suitale for the application in which the one-chip microcomputer is as a processor, with high efficiency, accurate identification and good versatilityin. The device adopts the one-chip microcomputer as processor and is an integer of collecting, processing, identifying and transmitting image, and characterized in that the device comprises an image collection module, one-chip microcomputer processing and identifying module, a communication interface, a power module and transparent sealing structure. The device, having low cost, high efficiency and little volume, can be installed above the various mechanical instrument window with other structure, accordingly the identification of figure displayed in the instrument window can be carried out, as well as the date and the image are transmitted at the same time.