A dynamic capacitance compensation (DCC) apparatus and method for a liquid crystal display (LCD). The apparatus includes a one-dimensional block-encoding unit reading pixel values of an image in line units, dividing the pixel values of the read image into one-dimensional blocks in predetermined pixel units, transforming and quantizing the one-dimensional blocks, and generating bit streams; a memory storing the generated bit streams; a one-dimensional block-decoding unit which decodes the bit streams stored in the memory by inverse quantization and inverse transform; and a compensation pixel value-detecting unit detecting a compensation pixel value for each pixel based on a difference between each pixel value of a current frame and each pixel value of a previous frame decoded by the one-dimensional block-decoding unit.