0.1 mm accuracy means expensive laser as far as I know ...
e.g. - http://www.metrologyresource.com/glossary.php -
but this one might be just within your requirements
image from polulu
in the range of 5-25 mm you could use an AREF of 2.5Volt to have a 0..1023 range on 2.5 volt.
Given 2 bits of noise that would mean 256 distinct values on 2.5 volt ==> 0.01 volt