The E–H-mode-transition process in an inductively coupled argon–mercury mixture discharge plasma was investigated by an interferometer and a spectrometer. The transition powers upon different natural pressures and mercury content were studied. The electron density versus input power under several discharge conditions in the E mode and H mode was measured detailedly by the interferometer. These results suggested that the nonlinear effects of power absorption and dissipation play a significant role in the mode transition process. In addition, the optical emission system was employed to obtain the intensity ratios of spectral lines at different mercury proportions, which shed light on the mechanism of stepwise ionization and the variability of H-to-E-mode-transition powers in the argon–mercury mixture discharge.