This paper presents a new approach to hyperspectral signature analysis, called spectral derivative feature coding (SDFC). It is derived from texture features used in texture classification to dictate gradient changes among adjacent bands in characterizing spectral variations so as to improve better spectral discrimination and classification. In order to evaluate its performance, two known binary coding methods, spectral analysis manager (SPAM) and spectral feature-based binary coding (SFBC) are used to conduct comparative analysis. Experimental results demonstrate that the proposed SDFC performs more effectively in capturing spectral characteristics than do SPAM and SFBC.