Optical hydrogen sensors based on metal hydrides have distinct advantages over other types of hydrogen sensors as they can be made small, do not require the presence of oxygen, and have a large sensing range. The working principle is based on the fact that when exposed to an atmosphere containing hydrogen, a metal hydride absorbs hydrogen, which in turn changes the optical properties. In a micro-mirror configuration, this change in optical properties can be measured by measuring the reflectivity of light. Tantalum alloys have been identified as suitable sensing material owing to their large sensing range, hysteresis-free response and fast response times. Here, we rationally develop a micro-mirror hydrogen sensor based on a tantalum-alloy as sensing layer. We first study the optical contrast of Ta_0.88Pd_0.12 thin films with a Pd_0.6Au_0.4 catalyst layer deposited on substrates with various catalyst and sensing layer thicknesses in reflection. Modeling the experimental results shows that the total optical contrast, that is the change of the reflectivity with a changing hydrogen concentration, is a strong interplay of wavelength and hydrogen-concentration dependent reflection, attenuation and amplification coefficients of both the Ta_0.88Pd_0.12 thin films with a Pd_0.6Au_0.4 catalyst layer. These effects may either constructively or destructively contribute to the overall signal, making carefully choosing the wavelength and layer thicknesses essential. Using optimal values of the wavelength and layer thicknesses, we successfully construct and test a micro-mirror sensor that can detect hydrogen over at least 5 orders of magnitude in hydrogen concentration without any hysteresis.