A touch panel and a driving method thereof, and a display device are provided. The touch panel includes a first substrate and a second substrate; the first substrate includes a first electrode pattern layer, and the first electrode pattern layer includes first electrode blocks insulated from each other; the second substrate includes a second electrode pattern layer, touch lead lines, and a third electrode pattern layer; the second electrode pattern layer includes second electrode blocks insulated from each other; the second electrode blocks correspond to and are electrically connected with the first electrode blocks, respectively, and the second electrode blocks are respectively electrically connected with the touch lead lines to process an electrical signal of a touch operation; and the third electrode pattern layer includes third electrode blocks insulated from each other, and the second electrode blocks are insulated from the third electrode blocks to form touch capacitors, respectively.