We demonstrate an absorption-based polarization grating made of dichroic dye-doped polymerizable liquid crystal. These gratings manifest a polarization-sensitive diffraction efficiency over the absorption band of the employed dye material, based on our theoretical analysis and experimental evidence. The spectral range can be easily tailored by varying the dye material. Since these gratings generate first-order diffracted beams with orthogonal circular polarizations, they can be utilized as key components in polarimetry systems. Meanwhile, due to their absorptive nature, these polarization gratings can function as LED-compatible polarization masks for photopatterning while fabricating various liquid crystal devices.