Fiber interferometric sensor can achieve sensing enhancement of various physical quantities based on the optical vernier effect, but there are currently no proposed torsion detection enhancement schemes. In this paper, we control the number of cladding modes in the sensing single-mode fiber by graded index fiber collimator and form a dual beam interference with the core mode, resulting in a transmission spectrum with regular waveform. The experimental results indicate that the sensing Mach-Zehnder interferometer (MZI) has a torsional sensitivity of −0.014 nm/(rad/m) within a large detection range of 0–60 rad/m. After amplification by optical cursor effect, it reaches −0.361 nm/(rad/m) with an amplification factor of 25.8 times, the detection limit for envelope valley is 0.345 rad/m. The sensor has a relatively small response to other physical quantities, with a strain sensitivity of 20.4 pm/με, a temperature sensitivity of 1.792 nm/℃, and a refractive index sensitivity of 77.885 nm/RIU, exhibiting excellent anti refractive index crosstalk performance. In addition, we discuss the phase demodulation scheme for interferometric sensor based on optical vernier effect sensitivity enhancement for the first time, which can filter out noise caused by dispersion or loss, eliminate the influence of the initial phase of the sensing system, and evaluate the direction of improving the detection performance of the phase demodulation system.