To provide an electro-optical device permitting easy gradation control and high-definition display.

When an electric field is applied across a 1st pixel electrode 9A and a 2nd pixel electrode 9B on a TFT array substrate 10 in a liquid crystal display, an alignment state of a liquid crystal 5 is changed according to a lateral electric field (an electric field horizontal to the substrate) or an oblique electric field similarly IPS mode. However, since a counter electrodes 21 is formed on a counter substrate 20, the liquid crystal 5 is also influenced by an electric field (an electric field vertical to the substrate) generated across the pixel electrodes 9A, 9B and the counter electrode 21, in addition to the influence by the electric field generated across the pixel electrodes 9A, 9B.