Digital signals with higher resolution are generated from dual-phase encode signals indicating phase changes of a position or an angle of a target. A signal processing apparatus for processing dual-phase encode signals indicating changes in position of a target, comprises: a first noise reduction unit configured to remove high frequency noise from each of the dual-phase encode signals before interpolation processing; an interpolating unit configured to apply interpolation processing to the dual-phase encode signals output from the first noise reduction unit to generate dual-phase encode signals with higher resolution; and a second noise reduction unit configured to remove noise from the dual-phase encode signals output from the interpolating unit.