The disclosure relates to a data reading system and method for identifying and processing optical code symbols, primarily DotCode symbols. The data reading system includes an imager for obtaining an image of an item containing the DotCode symbol and a processor for analyzing the image for ultimately decoding the data from the DotCode symbol. The processor analyzes the obtained image to determine a starting pattern for the DotCode symbol and to begin building the DotCode grid from the starting pattern. Once the DotCode grid has been completed, the processor generates a label hypothesis based on the identified data dots on the DotCode grid. Thereafter, a decoder unit receives the label hypothesis from the processor and decodes the label hypothesis to obtain the data for the DotCode symbol.