The shear banding of a sheared 2D mesoscopic dust Coulomb liquid at the kinetic level was experimentally demonstrated. A microscopic dynamic picture of a sheared 2D mesoscopic dust Coulomb liquid at the kinetic level was also constructed. These dusty plasma crystal and liquid were formed by negatively charged micrometer sized particles. The nonlinear threshold-type response of motion to the local stress induced by thermal and external drives leads to shear thinning and the enhanced avalanche-type local topological transitions with stress relaxation in the form of clusters, under the topological constraints from the discreteness and finite boundary. The shear banding has also been observed in the glassy-type systems such as foams, micelles.