Transient voltage generated in ultra-high voltage (UHV) transmission system has a severe impact on the insulation state of gas-insulated transmission lines (GIL). In order to monitor the transient voltage process occurring in UHV GIL during operation, this paper constructs a transient voltage ultra-wideband (UWB) online monitoring system based on capacitive voltage division. This system has been applied in an 1100 kilovolt (kV) GIL utility tunnel project. It can be used to analyze the characteristics of the recorded transient voltage waveforms for distinguishing different types of insulation failure. In this paper, through the case studies in time domain and time–frequency domain, the case of SF₆ gap breakdown and that of post insulator flashover have differentiated characteristics in instantaneous frequency. Additionally, a case of secondary discharge is successfully estimated through the time–frequency distribution of the transient voltage. In order to find the malfunctioning chamber of GIL rapidly, a two-terminal TW-based fault location method based on this monitoring system is developed in this paper. The case study validates the locating accuracy which directly support for shortening the maintenance time of GIL.