A fundamental challenge in deep metric learning is the generalization capability of the feature embedding network model since the embedding network learned on training classes need to be evaluated on new test classes. To address this challenge, in this paper, we introduce a new method called coded residual transform (CRT) for deep metric learning to significantly improve its generalization capability. Specifically, we learn a set of diversified prototype features, project the feature map onto each prototype, and then encode its features using their projection residuals weighted by their correlation coefficients with each prototype. The proposed CRT method has the following two unique characteristics. First, it represents and encodes the feature map from a set of complimentary perspectives based on projections onto diversified prototypes. Second, unlike existing transformer-based feature representation approaches which encode the original values of features based on global correlation analysis, the proposed coded residual transform encodes the relative differences between the original features and their projected prototypes. Embedding space density and spectral decay analysis show that this multi perspective projection onto diversified prototypes and coded residual representation are able to achieve significantly improved generalization capability in metric learning. Finally, to further enhance the generalization performance, we propose to enforce the consistency on their feature similarity matrices between coded residual transforms with different sizes of projection prototypes and embedding dimensions. Our extensive experimental results and ablation studies demonstrate that the proposed CRT method outperform the state-of-the-art deep metric learning methods by large margins and improving upon the current best method by up to 4.28% on the CUB dataset.