Important preliminary note
The cleverest ideas in what follows are not mine but Deusovi's, posted by him in comments to the first version of this answer. Some of the others are Stiv's, also posted in comments.
If you like this answer, please go find something of theirs and upvote it.
Solution
The words we are looking for are
DOUBLE ENCODED. (That is: the words are DOUBLE and ENCODED, and they have also been encoded twice each.)
On each side of the image are
two representations of the same set of letters, overlaid and represented as follows: for each pixel, count the number of letters whose representation covers that pixel, getting a number from 1 to 7 (the number of letters in the RH word); convert that to a colour in "rainbow order": red=1, orange=2, yellow=3, green=4, blue=5, indigo=6, violet=7. (Background grey for 0.) So, e.g., a pixel used in exactly two of the letters will be coloured orange.
The left side
says DOUBLE. At the top we have the letters themselves on a 5x5 grid. (So e.g. the top-right pixel is yellow, meaning that 3 of the letters include that pixel: the O, U, and E.) At the bottom we have Braille. Here's a picture of all the letters so you can check that the numbers add up:
# # # # . # # # # # # . . . # # # # # . # . . . . # # # # # 6 4 4 4 3
# . . . # # . . . # # . . . # # . . . # # . . . . # . . . . 6 . . . 4
# . . . # # . . . # # . . . # # # # # . # . . . . # # # # # 6 2 2 2 4
# . . . # # . . . # # . . . # # . . . # # . . . . # . . . . 6 . . . 4
# # # # . # # # # # # # # # # # # # # . # # # # # # # # # # 6 6 6 6 4
and the Braille:
oo o. o. o. o. o. 61
.o .o .. o. o. .o 23
.. o. oo .. o. .. 31
D O U B L E
The right side
says ENCODED. At the top we have flag semaphore. At the bottom we have Morse code, with the following convention: each element (dot or dash) is represented by two pixels. A dot uses only the left-hand pixel. A dash uses both. (A real Morse code dash is 3x the length of a dot, but that would have made things too obvious.) Elements are written from the left, so to speak. Here's the semaphore:
. . / . . . \ . . \ . . . | . . . / . | . 2 2 2
. o . . o . . o . - o . . o . . o . . o . 1 o .
. | . / . \ . | . . . . . | . . | . . | . 1 5 1
E N C O D E D
and the Morse:
E . 1.
N -. 11 1.
C -.-. 11 1. 11 1.
O --- 11 11 11
D -.. 11 1. 1.
E . 1.
D -.. 11 1. 1.
totals 75 51 42 1
Credit where due
Deusovi suggested the colours-indicating-counts thing and the idea that the blocks below the "main" images are themselves other overlaid representations rather than merely indicating what letters to use in what order. Stiv suggested the Morse interpretation of the lower right (and also suggested a very plausible second word, which unfortunately happened to be wrong). I did some ineffectual scutwork trying out other interpretations of the image, all wrong; found the first word after Deusovi suggested how it all works; and found the second word, admittedly by telling a computer what to look for. Again: go and upvote some of their stuff!
