A liquid crystal device in which a liquid crystal layer is driven by an in-plane electric field scheme and the image display performance is improved. Pixel electrodes and counter electrodes are provided on both sides of an insulating film in a pixel area on the liquid crystal side of one of transparent substrates holding a liquid crystal there between and opposed to each other. An electric field having a component parallel with the transparent substrates is produced between the electrodes. Either each pixel electrode or each counter electrode is a transparent electrode formed around the other electrode in a area not overlapping at least with the other electrode. The insulating film has a multilayer structure.
