An LCD apparatus having a liquid crystal layer sealed between a first substrate having a first electrode and a second substrate having a second electrode, wherein the first substrate comprises a reflective layer formed only in a subregion within a pixel region, for reflecting light. A transparent conductive material is used for the first electrode and the first electrode made of the transparent conductive material is layered to cover a transmissive region within a pixel region and over the reflective layer in a reflective region within the pixel region to directly cover the reflective layer. Optimum cell gaps dr and dt are set in the reflective and the transmissive regions, respectively, based on a twist angle, which is a difference between the alignment directions of liquid crystal at the side of the first electrode and of liquid crystal at the side of the second electrode so that an optimum reflectivity and an optimum transmittance are realized in each region to allow enhancements in the quality of a transflective LCD. A configuration may be employed in which a switching element is formed over the first substrate and the reflective layer is placed in the reflective region of a pixel region on an insulating film which covers the switching element, the reflective layer being insulated from the switching element, the work functions for the first electrode and for the second electrode are similar.