Blue phase liquid crystal display (BPLCD) is emerging as next-generation display, because of its fast response speed and very wide viewing angle. However, it has some weak points to be improved. The light leakage at the dark state affects the contrast ratio, and needs to be analyzed and improved. Considering the double-twist structure of blue phase liquid crystal (BPLC) and the simple twist structure of cholesteric liquid crystal (ChLC), the two twist structures are similar. The transmittances and reflectances of planar and focal conic texture of cholesteric liquid crystal and blue phase II liquid crystal are simulated by finite-difference time domain (FDTD) method. The FDTD method is based on the Maxwell’s equation, and can calculate the optical rotatory power directly. The effective optical rotatory powers of the three liquid crystal states are proposed and compared using the light leakages at the cell with crossed and parallel polarizers. The results show that the transmittance of BPLC with crossed polarizers is lower than that of planar texture and larger than that of focal conic texture of ChLC. The optical rotation of BPLC is not the same at any point in one periodic cross section in the light path because the liquid crystal arrangement is complex, the effective optical rotatory power is defined as the average value of the optical rotatory powers at all points. Comparing with the optical rotatory powers of planar and focal conic textures of ChLC, the optical rotatory power of BPLC is less than that of planar texture and larger than that of focal conic texture. Moreover, the Bragg reflections are also simulated, the results show that blue phase liquid crystal is similar to planar state cholesteric liquid crystal, only the reflection intensity is smaller, and no obvious Bragg reflection appears in focal conic state cholesteric liquid crystal. Considering the optical rotation and Bragg reflection, the light leakage and reflective light of BPLCD cannot be ignored if the helix pitch is not less enough, however, these of focal conic texture of ChLC are very small compared with those of BPLC, as a result, the focal conic texture of ChLC can replace blue phase liquid crystal to obtain the good dark state and high contrast ratio.