A liquid crystal device of the type which comprises a pair of substrates, each having a planar conductor, and a liquid crystal provided between the paired substrates, fine domains whose threshold voltages for switching the liquid crystal are different from one another being finely distributed in said liquid crystal wherein said device comprises a pair of substrates each having a transparent electrode and an alignment film formed thereon in this order, the paired substrates being arranged to have a given space therebetween so that the respective alignment films are facing each other, and a ferroelectric liquid crystal being injected into the given space, wherein the number of domains having a size larger than 2 .mu.m.phi. in a field of 1 mm.sup.2 is not smaller than 300, and a transmittance through inverted domains is 25%, and the width of the threshold voltage within the domains is not smaller than 2 volts within a transmittance range of from 10 to 90%, wherein when said liquid crystal is subjected to measurement of x-ray diffraction, two or more highest peaks of an x-ray diffraction intensity which exhibit angles of the layer inclination exist at an incident angle of x-ray not higher than 90.degree. or not lower than 90.degree..