A liquid crystal device is constituted by a pair of substrates having mutually opposing electrodes thereon, and a liquid crystal layer disposed between the substrates so as to form a pixel comprising a pair of the opposing electrodes and the liquid crystal layer therebetween. The liquid crystal layer in a pixel is divided into a plurality of regions having mutually different liquid crystal layer thicknesses, and the pixel is constituted so as to show an applied voltage-transmittance characteristic having an improved linearity suited for gradational display. More specifically, for example, the liquid crystal layer in a pixel is provided with locally varying thicknesses by forming on a substrate pluralities of stripe-shaped projections and indentations at locally different indentation widths so that the projections have a smaller width in a region having a smaller indentation width than in a region having a larger indentation width. <IMAGE> <IMAGE>