We analyze the performance of high dynamic range liquid crystal displays (LCDs) using a two-dimensional local dimming mini-LED backlight. The halo effect of such a HDR display system is investigated by both numerical simulation and human visual perception experiment. The halo effect is mainly governed by two factors: intrinsic LCD contrast ratio (CR) and dimming zone number. Based on our results, to suppress the halo effect to indistinguishable level, a LCD with CR≈5000:1 requires about 200 local dimming zones, while for a LCD with CR≈2000:1 the required dimming zone number is over 3000. Our model provides useful guidelines to optimize the mini-LED backlit LCDs for achieving dynamic contrast ratio comparable to organic LED displays.