The invention discloses a liquid crystal display element including: a pair of display substrates each having a support and an electrode provided on one surface of the support; and a display layer provided between the electrodes of the pair of display substrates, wherein the display layer contains gelatin and liquid crystal drops or microcapsules; and the liquid crystal drops or microcapsules are densely arrayed in a monolayer, and a method of manufacturing the liquid crystal display element, including: applying to a surface of one of the display substrates which surface has the electrode, a coating solution in which liquid crystal drops or microcapsules are dispersed in a solution containing gelatin and a solvent, thereby forming a coating layer; and evaporating the solvent in the coating layer at a temperature not less than the freezing point of the gelatin to provide a display layer between the electrodes of the display substrates.