The anatomical location of vestibular disorders that cause vertigo is commonly diagnosed simply as “peripheral” or “central”. As one can easily imagine, there are many anatomical regions in the central nervous system that can give rise to vertigo. At least two anatomical locations where peripheral vestibular lesions cause vertigo are possible: the semicircular canals and the otolith. Moreover, the semicircular canals on each side consist of three canals, anterior, lateral, and posterior, and the otolith consists of two organs, the saccule and utricle. The existence of localized lesions in the labyrinth has been noticed very recently. Lateral canal benign paroxysmal positional vertigo is a good sample of a localized labyrinthine lesion. However, very little is known about methods of diagnosis of these lesions. A very powerful tool for diagnosing localized lesions is three-dimensional analysis of spontaneous or induced nystagmus. The velocity vector of the nystagmus allows identification of the anatomical source of the lesion, that generates the nystagmus.