A display polarizer may have a polymer layer such as a polyvinyl alcohol layer coated with a dichroic dye such as iodine. A polymer layer such as a tri-acetyl cellulose layer may be formed on the polyvinyl alcohol layer so that the iodine is interposed between the polyvinyl alcohol layer and the tri-acetyl cellulose layer. To provide protection for the iodine layer, an additional polymer layer such as an additional tri-acetyl cellulose layer and a layer of adhesive may be formed on top of the polymer layer. A functional layer such as an antireflection layer may form an outermost layer in the polarizer. Compensation films may be formed beneath the polyvinyl alcohol layer. Additional display layers such as a lower polarizer layer and interposed layers such as a thin-film transistor layer, liquid crystal layer, and color filter layer may be formed below the compensation films.