Two axis joystick rotation

Joystick.cs

// Joystick.cs - 06/02/2017
// Eric Policaro

using UnityEngine;

namespace Esp.Entity
{
    public class Joystick : MonoBehaviour
    {
        public Transform Target;

        [Header("Joystick Handle")]
        public Transform TopOfHandle;
        public Transform HandleJoint;
        public float LengthOfHandle = 0.8f;

        [Header("Movement Limits")]
        [Range(0f, 90f)]
        public float MaxAngle = 60f;
        public float SmoothingSpeed = 100f;
        public float WiggleRoom = 0.025f;

        [Header("[RUNTIME]")]
        [Range(0f, 1f)]
        public float Normalized;

        public Vector3 InputDirection;

        void OnDrawGizmosSelected()
        {
            Color c = Gizmos.color;
            Gizmos.color = Color.cyan;
            Gizmos.DrawWireSphere(TopOfHandle.position, WiggleRoom);
            Gizmos.color = c;
        }

        void Update()
        {
            // Direciton of the pull, normalized to the orientation of the joystick
            Vector3 toTarget = (Target.position - transform.position);
            Vector3 dir = transform.InverseTransformDirection(
                Vector3.ProjectOnPlane(toTarget, transform.up).normalized);
            dir.y = 0f;

            // Deflection amount of the stick
            float alpha = Vector3.Angle(transform.up, toTarget);
            Normalized = Mathf.InverseLerp(0f, MaxAngle, alpha);

            // Rotate a small amount around the origin
            if (toTarget.magnitude <= WiggleRoom)
            {
                Quaternion target = Quaternion.FromToRotation(
                    transform.InverseTransformDirection(transform.up),
                    toTarget);

                HandleJoint.rotation = Quaternion.RotateTowards(
                    HandleJoint.rotation, target, SmoothingSpeed * Time.deltaTime);
            }
            else
            {
                // If we go too far, lock in to the dominant cardinal direction
                Quaternion target;
                if (Mathf.Abs(dir.z) > Mathf.Abs(dir.x))
                {
                    dir.x = 0f;
                    target = GetClampedRelativeRotation(dir.z, transform.right);
                }
                else
                {
                    dir.z = 0f;
                    target = GetClampedRelativeRotation(-dir.x, transform.forward);
                }

                HandleJoint.localRotation = Quaternion.RotateTowards(
                    HandleJoint.localRotation, target, SmoothingSpeed * Time.deltaTime);
            }

            // Set the joystick input value, this is a valid value regardless of orientation
            InputDirection = dir * Normalized;
        }

        private Quaternion GetClampedRelativeRotation(float lockedDirection, Vector3 rotateAxis)
        {
            float scale = MaxAngle * Normalized * Mathf.Sign(lockedDirection);
            Vector3 localDirection = transform.InverseTransformDirection(rotateAxis);
            return Quaternion.Euler(scale * localDirection); 
        }
    }
}