Currently, the realization of single-layer encapsulated color RGB pixel displays still face significant challenges, including the need for effective and strategic manufacturing methods as well as the development of systematic liquid crystal (LC) materials. Herein, inexpensive single-layer structured color displays are obtained using diffusion cooperative etching strategy. Key advancements include the sequential resolution of pixel structure design, precise color tuning of polymer-stabilized cholesteric liquid crystal (PSCLC), preparation of RGB display panels and construction of principle prototypes of color displays. Importantly, the dynamically changing electronically controlled display process of PSCLC is demonstrated by simulating the color stacking of red, green and blue pixel units. The prepared single-layer color displays enable electronically controlled pattern changes. Notably, a multi-mode anti-counterfeiting model is also developed, leveraging the Bragg selective reflection of cholesteric liquid crystals (CLCs), which is irradiated by a specific light source and decoded by Matrix-Morse coding. The encrypted information can be decoded according to the Morse code table in combination with light source irradiation at specific wavelengths. Therefore, it significantly enhances the defense capability of CLCs.