Various dielectric response processes in the oil‐paper insulation are sensitively affected by the insulating states (ageing degrees and moisture contents). However, the existing research is still incomplete in revealing the microscopic mechanisms of various dielectric response processes in oil‐paper insulation with different insulating states. Given this issue, the genetic algorithm is first adopted to extract the Dissado–Hill (D–H) model parameters by simulating the frequency domain spectroscopy (FDS) of oil‐paper insulation. Then, the change laws of the extracted D–H model parameters are adopted to reveal the microscopic mechanisms of various dielectric response processes. Microscopic mechanisms of four dielectric response processes are studied, which are quasi‐dc relaxation, loss peak relaxation, optical frequency relaxation, and DC conductance. Meanwhile, due to the dielectric response processes being dominated by various polar particles (methanol, ethanol, furfural, and water molecule), the contents of various ageing by‐products dissolved in the insulating oil are measured to support the above analysis. In this respect, a dielectric theoretical reference for the FDS technique to research the insulating states of oil‐paper insulation is provided.