A liquid crystal display-element which has the high speed response and the high contrast and a display device employing the same are provided. In a display device employing a reflection type liquid crystal light valve, a retardation of a retardation plate which is provided between a polarizing element such as a polarizing beam splitter and the reflection type liquid crystal light valve is generally made ¼ of the wavelength of the incident light, and an optical axis (a slow axis or a fast axis) of the retardation plate and the polarizing direction of the incident polarized light are shifted from each other by slightly larger than 0 degree in order to arrange such optical elements.