Vertical stratification in trees may respond to selective pressures to enhance light interception and utilization; therefore, the vertical functional variation in leaf traits may indicate niche partitioning within forests. In this study, vertical variations in leaf and crown structure traits of seven common tree species were analysed with respect to differences between species in different height groups, within the same height range, in the same species across tree height, and different parts of the individual tree crown to reveal coexistence mechanisms in subtropical forest tree species. There were multiple levels of trait variation in the vertical dimension, validating the existence of vertical niche differentiation in subtropical forest species. The functional trait differences arose among different height groups, among species co-occurring within the same height range, in the same species across tree height, and among different parts of the individual tree crown. Variation in comparative advantages, which was characterised by those traits between species across different height ranges, was also one of the manifestations of niche differentiation in the vertical dimension. Moreover, contrasting results between lower height ranges and higher ranges in the relationship between species’ differences in functional traits and species’ difference of abundance were found, further confirming that there was obvious vertical niche separation in the community. This study emphasised the importance of vertical variation in species’ performances in elucidating the mechanisms of tree species coexistence in subtropical forests.