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This paper proposes an automatic test bench, based on a rigorous and repeatable measurement procedure, for the analysis of a position sensor linear variable differential transformer (LVDT). The test bench allows complete characterization of an LVDT sensor working in an interfering magnetic field by evaluating the uncertainty and nonlinearity of the sensor. This issue is addressed in neither the sensor datasheet nor the scientific literature. The potential of the method and the performance of the automated test bench are proven by measuring the main sensor characteristics such as nonlinearity and uncertainty, and the error of a position reading due to external magnetic interference on two commercial LVDTs. The sensors are based on two different reading techniques, and both are analyzed using current and voltage excitations. In fact, the test bench permits to study the robustness of the sensor with respect to external magnetic fields by comparing position drifts due to interference at varying source excitations and reading techniques.