I fitted a 2 axis DRO to my DW mill a few years back. Space is limited, and I didn’t want to lose any y-axis travel, so I used compact magnetic scales and small read heads. My kit came from Machine DRO, but the supplied mounting hardware was clunky and not very useful, so I made my own. Very pleased with the end result, and I would never go back to using dials. Some pictures of my set up are attached. Let me know if You need any further info.
Mike


