If you have two devices that are running on batteries with no connection to protective earth, do you need a 3 wire (A, B, Gnd) connection, or will a 2 wire (A, B) connection between the two devices work exactly the same?
A is actually voltage on A with respect to Gnd
B is B w.r.t. Gnd
Differential is (A-B) = ((A w.r.t. Gnd) - (B w.r.t Gnd))
So, yes 3 wires required.
On battery power you have the advantage that you avoid ground loops, so isolator not required.
BUT be sure sensors and/or actuators do not have a sneaky connection to earth, e.g. Gnd to body.