An image is displayed by modulating TM-polarized light between the polarizer 2 and the wire grid polarizer 18 through the variation of the optical characteristic of the liquid crystal layer 12 interposed between the transparent plate 4 and the transparent plate 26. Degradation of contrast in the bright ambience is avoided by providing an absorption layer for absorbing TE-polarized light on that surface of the wire grid polarizer 18 which faces the liquid crystal layer 12.