In order to improve the work range of a micro-stage, a novel displacement amplification mechanism was designed, and its static and dynamic characteristics were analyzed. The novel two-level micro-displacement amplification mechanism was designed by using the level principle. The finite element software ANSYS was used to analyze its flexibility and magnification characteristics. The analysis results show that the designed stage can amplify y direction displacement and the amplification ratio is 8.81, while the displacements in the x and z directions are small. The results of the sensitivity analysis of the mechanism shows that the displacement sensitivity for x and y direction is 0.86, 8.82 respectively, and it illustrates the stage is sensitive in y direction. The modal analysis of the mechanism was carried out, the and plane movement of the stage could be realized by seen from the mode shapes, but the displacement in x direction was smaller, and the prestress had a small effect on the natural frequency of the mechanism. The study results show that the designed mechanism has larger workspace and higher sensitivity. 