Traffic signals play a pivotal role in modern life by preventing collisions, regulating traffic flow, and ensuring a predictable and efficient transportation system. Adaptive traffic light signal control (ATSC) is a promising paradigm for mitigating traffic congestion in Intelligent Transportation Systems (ITS). Among various AI-based approaches, Deep Reinforcement Learning (DRL) has gained widespread application, demonstrating superior performance. This paper aims to develop a latent space reinforcement learning method for intelligent traffic control, with a focus on making explainable decisions. According to the latent model and hidden Markov mixed model, this method integrated both to develop an ATSC framework for traffic networks with multiple intersections. Given the challenges posed by high-dimensional data and a limited understanding of the task, traditional decision-making methods often struggle with understanding the environment. This paper aims to provide semantic information and an enhanced understanding of the environment by offering interpretable states. The latent model is employed to extract task-relevant information from underlying representations within a framework that unifies representation learning and DRL. The experimental results demonstrate how our approach effectively and efficiently balances traffic flow, leading to improved traffic management.