The Easson ES-8 & ES-8A are completely different models. The ES-8 (non A) is an older model.
Generally DRO displays come in two different versions, mill/universal specific & lathe specific. The easiest way to tell if you have a lathe specific DRO is the second axis will be marked Z instead of Y like on a mill specific DRO.
To add, a 3 axis lathe specific DRO will have the 2nd & 3rd axis marked something like Z0, Z1. of course a lathe specific DRO isn't much different except that it won't have all the mill specific functions that are useless on a lathe & many times will be missing the R/D function depending on manufacturer. This is one of the main reasons I set out to get a lathe specific DRO display for my lathe. I use the R/D function a lot on the lathe & I wouldn't want to be without it.
I found pics of a lathe specific ES-8 that has the R/D function but I've never seen a regular lathe specific ES-8A model on anyone's machines but one Easson's CN site there is a ES-8A constant speed lathe model that is lathe specific & has the R/D function. I used to have a ES-8A on my mill, there was no R/D function. Only way to do it is to change the setting in the settings.
EDIT: Stupid me, I kept wondering why you would need the R/D function on a mill & didn't realize you were saying yours was set to the diameteral mode. Now I remember, on my lathe specific DRO (not an Easson) I can set R/D in the setting but not on the Easson. I forget when I had the ES-8A but for my ES-12 I can set DRO Type. If it's set to lathe I believe it automatically reads in diameteral for the second axis. See if you have this setting & set it to mill.