An optical liquid-level sensor (LLS) based on a long-period fiber grating (LPG) interferometer is proposed and experimentally demonstrated. Two identical 3-dB LPGs are fabricated to form an in-fiber Mach-Zehnder interferometer, and the fiber portion between two LPGs is exposed to the liquid as the sensing element. The sensitivity and measurement range of the sensors employing different orders of cladding modes are investigated both theoretically and experimentally. The experimental results show good linearity and large measurement range. One of the significant advantages of such a sensing structure is that the measurement level is not limited to the length of the LPG itself. Also, the measurement range and sensitivity of the proposed LLS can be readily tailored for a particular applications.