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That is normal. There was a sticker attached to the gauge panel when your car was new, stating something to the effect that anolog gauges were not graduated in a linear fashion.
Tony
My '94 reads diffrent water temps. At an indicated 170 digital the analog gauge reads 185 and so on. What's up ???
Actually, for the LT1/LT4, the analog gauge should be reading lower than the digital gauge.
The reason: the sensor for the analog gauge is in the cylinder head, which is where the coolant enters the engine from the radiator, and the sensor for the digital gauge is in the coolant pump, in the section of the pump where the coolant exits the engine (this is where the coolant should have the highest temperature after picking up heat from the engine) to go back to the radiator.
Because these sensors are in different locations, they will probably not read the same.