With the rapid advancement of modern communication technologies, safeguarding information against forgery and unauthorized access has become increasingly critical, driving interest in advanced optical encryption systems. These systems excel in parallel image data processing, enabling swift detection and verification of sensitive information. However, traditional light-based encoding methods are constrained by their limited dependence on static parameters such as light wavelength and intensity and lack dynamic, reversible adaptability. To overcome these limitations, we propose an optical cryptography system that utilizes the tunable color and polarization selectivity of in situ polymerized, multicolor patterned chiral liquid crystals. This system capitalizes on the multifunctional optical properties of chiral liquid crystals, including thermally induced phase transitions that allow reversible and repeatable tuning, rendering encoded information unidentifiable until specific conditions are met. Furthermore, the system incorporates advanced disguising mechanisms through color separation, revealing accurate information only under predefined conditions. Key to its enhanced functionality is the integration of circular polarization selectivity, enabling electrically switchable polarization separation. This feature facilitates the display of distinct information under right- or left-handed circularly polarized light. By exploiting the dynamic optical properties of chiral liquid crystals, our system offers a multilevel encryption platform that significantly enhances data security. This versatile approach surpasses the limitations of conventional methods, providing a robust solution for secure data encoding and anticounterfeiting applications.