I have the same issue with my Lumia 1520. I believe this is due to a PWM backlight. Most light sources, including your house hold light bulbs, work by flickering on/off at an extremely high rate that your eye can't see. What a PWM backlight does, is that it controls the total light emitted by lowering the number of light on cycles per second. Less cycles, less light. Follow me so far? Lets say, hypothetically, that a light bulb flashes on/off 1000 times a second. If you were to reduce the light output to 10% of normal, the light on/off cycle would happen just 100 times per second. So what it all comes down to is how low the brightness is set to, and how sensitive your eyes are. I think the minimum brightness allowed with the ambient light sensor on automatic is a bit too low, causing visible problems for many people.
As such, this can be corrected by software. By either giving us better controls over manual brightness adjustment instead of low/medium/high as the low is too bright! And also increasing the minimum brightness level of the backlight, so even in dark areas it still pulses at a higher rate so as to not cause notices le flickering. This of course means a slightly brighter display late at night. But I think its worth it to stop the annoying flicker.
Hope this helps guys.