Microstructural properties, phase transitions, and charge ordering of $\mathrm{Lu}{\mathrm{Fe}}_{2}{\mathrm{O}}_{4}$ have been extensively investigated by means of transmission electron microscopy (TEM) in a large temperature range from $20\phantom{\rule{0.3em}{0ex}}\text{to}\phantom{\rule{0.3em}{0ex}}550\phantom{\rule{0.3em}{0ex}}\mathrm{K}$. The experimental results demonstrate that the $\mathrm{Lu}{\mathrm{Fe}}_{2}{\mathrm{O}}_{4}$ crystal is commonly modulated by charge ordering (CO), which is often recognizable by superstructure reflections. The (001) twinning domains as a common defect often appear in the $\mathrm{Lu}{\mathrm{Fe}}_{2}{\mathrm{O}}_{4}$ crystals along the $c$-axis direction, with the crystals across each (001) boundary rotated by 180\ifmmode^\circ\else\textdegree\fi{} with respect to one another. The in situ cooling TEM observations from $300\phantom{\rule{0.3em}{0ex}}\mathrm{K}$ down to $20\phantom{\rule{0.3em}{0ex}}\mathrm{K}$ reveal remarkable alternations of the superstructures, suggesting a complex CO process in the present system. Careful analysis shows that the CO in the frustrated ground state is characterized by a modulation with a wave vector of ${\mathbf{q}}_{1}=(1∕3\phantom{\rule{0.3em}{0ex}}1∕3\phantom{\rule{0.3em}{0ex}}2)$. In situ heating TEM observations from $300\phantom{\rule{0.3em}{0ex}}\text{to}\phantom{\rule{0.3em}{0ex}}550\phantom{\rule{0.3em}{0ex}}\mathrm{K}$ clearly reveal that the CO modulation in $\mathrm{Lu}{\mathrm{Fe}}_{2}{\mathrm{O}}_{4}$ becomes invisible above a critical temperature of about ${T}_{C}=530\phantom{\rule{0.3em}{0ex}}\mathrm{K}$. These facts suggest that the CO should be the essential driving force for the structural transitions and ferroelectricity observed in this kind of layered material. Experimental measurements on the ferroelectricity show that the $\mathrm{Lu}{\mathrm{Fe}}_{2}{\mathrm{O}}_{4}$ material, in general, has a large dielectric constant of about 10 000 at room temperature. In order to understand the properties of low-temperature phase transitions, the magnetization and specific heat from $300\phantom{\rule{0.3em}{0ex}}\text{to}\phantom{\rule{0.3em}{0ex}}4\phantom{\rule{0.3em}{0ex}}\mathrm{K}$ have been briefly discussed.