This lecture covers the principle of Linear Variable Differential Transformer (LVDT) and mutual inductance in inductive sensors, including the differential transformer and magnetic shielding. It explains the conventions and equations related to mutual inductance, as well as the operation and approximations of LVDT. The lecture also discusses the primary and secondary coils, excitation, and output signals in LVDT, emphasizing the relationship between the input and output voltages. Additionally, it explores the phase relationships and amplitudes of the signals in LVDT.