Axis selectable handwheel

I would like a hand wheel (wired is fine) where I could select an axis and a step size and then dial in tool positions.

Does this exist?

I have seen people use an XBOX 360 controller, but I have no clue on the details.

Are you talking about something like this?

Another option is Contour Design’s ShuttleXpress — there’s support for it in Chilipeppr, and I believe bCNC.

Exactly! Will it work with xcarve? Or UGS?

No Mach 3. I believe GRBL does not support this too well, but i have seen custom controllers that do work using macros.