In this paper a localization system of a passive 3-D coil is proposed and signal uncertainties due to the 3-D coil's arbitrary orientation are analyzed. The 3-D coil is excited by an alternating primary magnetic field. Geometrically distributed pick-up coils measure the 3-D coil's secondary field. By means of a simulated look-up table that assigns expected voltages from the pick-up coils to the positions of the 3-D coil, the position of the 3-D coil is deduced by a least-squares approach. A basic assumption is that the secondary field is invariant to the orientation of the 3-D coil. This allows a reduction of the computational effort for the look-up table generation and the table search during the localization phase since for each position the field distribution for only one orientation has to be calculated. However, the assumption of invariance to rotation is only valid for a dipole model. In this paper we investigate the localization error introduced by this assumption when using 3-D coils with a geometric extent in an inhomogeneous primary field. Optimized localization methods that decrease the statistical error are proposed. The theoretical results are verified with measurements conducted on a laboratory system.