Electro‐optical characteristics related to the threshold behavior of liquid crystals when using the in‐plane switching (IPS) mode were investigated with interdigital electrodes. In order to analyze the switching behavior of liquid crystals, an equation, which expresses the threshold transition, was derived using the continuum elastic theory. It was made clear that it was the electric field and not the voltage that drives the liquid crystals in the IPS mode. Significantly, an inversely proportional relationship between the threshold voltage and the gap between the substrates was found to hold. Furthermore, the electro‐optical characteristics were recognized to change with the variation of the gap between the substrates. This behavior is due to the independence of electric field on liquid crystal layer normal. ©1995 American Institute of Physics.