Solid-state multi-focal and volumetric technologies highlight the future of 3D-display development. One of the most convenient implementations of multi-focal 3D displays are stacks of transparent liquid crystal displays. In this work, the core element is dissected—a switching optical diffuser element based on cholesteric liquid crystals, playing the role of a transparent display. In the present study, high-speed synchronized optical spectroscopy is used. We analyzed the kinetic and electro-optical characteristics of the diffuser element, the operation of which is based on the switching between diffuse and transparent states of this element. The underlying aim of this study was to investigate ways to improve some of these characteristics. It has been found that the transient peak in the optical transmission during field-off state, which is reducing the intensity of the light scattered by the diffuser element, is likely not associated to the assumed formation of the transient planar state. As the origin of this peak, we suggest a transient state possessing uniform lying helix structure, formed due the material flow taking place in the cell during relaxation of the liquid crystal. The role of the contacting surface’s pre-tilt angle in the switching process of the liquid crystal diffuser was established.