1mm accuracy is the holy grail of ToF sensors. We just are not there yet. At year-end we will be releaseing a sensor which is the same physically as the VL53L0X, but has better accuracy. I don't think even that will be +/- 1mm. But be on the look-out for the VL53L4 and give it a try.
currently the VL53L1X is the best we have.
Accuracy comes from consistency. If you are looking for the best accuracy choose the target to give a good signal return without being too bright. Too much signal is not as bad as too much, but being in the middle (20MCPS) is best if you can do it.
Cover the entire field of View. This is harder than it seems as the illumination spot gets wider with distance.
Choose a long timing budget. 4X timing budget = 2X accuracy. But there are limits.
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