Flexible sensors have recently attracted much attention for potential applications in motion measurement and wearable health monitoring. In this paper, an environment-friendly, economic, and high-performance paper-based self-inductive folding displacement sensor (PSIFS) was proposed, with displacement resolution of 20 μm and wide measurement range of 43.2 mm. The sensor sensitivity could reach 4.44% mm−1 with the maximum deviation of 0.00904 in experiments. The sensing mechanism based on inductance variation due to three-dimensional deformation of planar inductor coil and structural design principle under two dimensions of sensitivity and size were proposed and studied. The folding method to enhance sensitivity was proposed and 3 times sensitivity enhancement could be achieved by once folding. Multiple breathing states and motion states of the human joints could be recognized. The proposed simple paper-based sensor, folding method to increase sensitivity, and structural design model may provide a way for the research of flexible sensors.