Provided are a cholesteric liquid crystal layer that diffracts specific circularly polarized light in a specific wavelength range by transmission, and a method of forming the cholesteric liquid crystal layer. The cholesteric liquid crystal layer is obtained by immobilizing a cholesteric liquid crystalline phase, in which the cholesteric liquid crystal layer has a liquid crystal alignment pattern in which a direction of an optical axis derived from a liquid crystal compound changes while continuously rotating in at least one in-plane direction, in a cross-section of the cholesteric liquid crystal layer observed with a scanning electron microscope, bright portions and dark portions derived from the cholesteric liquid crystalline phase are tilted at 80° or more with respect to a main surface of the cholesteric liquid crystal layer.