Connecting quadrature encoder with differential line driver output

According to the data sheet it depends on which exact type/output you have (the seventh digit after the E23 part should give this):

Code 5: Electrical
0 5-26V in; 5-26V Open Collector w/2.2kΩ Pullup out
1 5-26V in; 5-26V Open Collector out
2 5-26V in; 5V TTL Totem Pole out
3 5-26V in; 5V Line Driver out (7272)
4 5-26V in; 5-26V Line Driver out (7272)
5 5-26V in, 5V Differential Line Driver out (4469)
6 5-15V in, 5-15V Differential Line Driver out (4469)

Outputs are described in a bit more detail at the start of the data sheet:

Outputs:
7272 Push-Pull: 40mA, sink or source
7272 Differential Line Driver: 40 mA, sink or source
7273 Open Collector: 40mA, sink max
4469 Differential Line Driver: 100 mA, sink or source

The high level you get is normally the same as (sometimes a tad lower than) your supply voltage, so if you provide 5V in, you get 5V out. You're not going to get a higher voltage out.