Transition-based parsing of natural language uses transition systems to build directed annotation graphs (digraphs) for sentences. In this paper, we define, for an arbitrary ordered digraph, a unique decomposition and a corresponding linear encoding that are associated bijectively with each other via a new transition system. These results give us an efficient and succinct representation for digraphs and sets of digraphs. Based on the system and our analysis of its syntactic properties, we give structural bounds under which the set of encoded digraphs is restricted and becomes a context-free or a regular string language. The context-free restriction is essentially a superset of the encodings used previously to characterize properties of noncrossing digraphs and to solve maximal subgraphs problems. The regular restriction with a tight bound is shown to capture the Universal Dependencies v2.4 treebanks in linguistics.