Is the encoder resolution the smaller the better in motion c

Forum: Motion Control RMCTools
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Is the encoder resolution the smaller the better in motion control？

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Yes.
However, for quadrature encoder inputs *(A, B, Z), you need to make sure that the maximum encoder frequency is not exceeded. This usually only applies on very high-speed applications. For example, the RMC150 QUAD module has a max encoder frequency of 4,000,000 counts/sec. If the encoder is rotating at 100 rev/sec (6000 rpm), then the encoder resolution should not exceed 4,000,000 / 100 = 40,0000 counts. The RMC70 QA module has a max encoder frequency of 4,000,000 counts/sec.