The Display name is purely for display, the only value saved is the Value (not the display name).
So if you want to get the Display Name, you'll have to do some custom logic.
A: A very manual and lengthy but quick, put some logic that {% if (val == "type1") { return "Name1";}|(identity)GlobalAdministrator%}, etc
B: A more manual but less lengthy approach, is create some form of mapping to reference that you can go from the value back to the display name. (macro to send "type1", look up the mapping (like a custom table), and return the value.
C: Best but slightly harder, is use the ClassInfoProvider to grab your Custom Table's class definition, and parse the XML to find this field's list of value;display names, then parse it to find the proper display name for the given value and set that logic in a macro. This will then always be 'up to date' and if you add the Custom Table's Class Name, Field Name to the macro's method, you can reuse it for other items.
Hope these help!