Linear Encoder Mounting

I am looking at installing linear encoders on a bench mill. the
ones I am looking at will fit nicely on the X and Z-axis, but not on
the Y-axis. I just don't have the clearance required, even if I use
an ultra small/thin version of these scales.
I could make it work though, if I mount the Y-axis scale on its side
and manufacture a mount for it. Can you think of a reason why this
would not work? I might have to make a cover for it too.

- Jack M.