I tried to prove the statement in both directions at once, as a chain of equivalent statements:
$G' \trianglelefteq G$.
$xG'x^{-1} = G'$ for all $x \in G$.
$\{xyx^{-1} \mid y \in G'\} = \{y \mid y \in G'\}$ for all $x \in G$.
$\{xyx^{-1}H \mid y \in G'\} = \{yH \mid y \in G'\}$ for all $x \in G$.
$\{xHyHx^{-1}H \mid y \in G'\} = \{yH \mid y \in G'\}$ for all $x \in G$.
$(xH)(G'/H)(x^{-1}H) = G'/H$ for all $xH \in G/H$.
$G'/H \trianglelefteq G/H$.
Here, 1 ⇔ 2 ⇔ 3 by definition, 3 ⇒ 4 by applying $\alpha \mapsto \alpha H$ to everything in the set, 4 ⇔ 5 by normality of $H$ in $G$ (we can twiddle the cosets around: $xHyHx^{-1}H=xyx^{-1}HHH=xyx^{-1}H$), and 5 ⇔ 6 ⇔ 7 by definition.
However, I’m not sure how to motivate that 4 ⇒ 3, to finish the proof. I haven't yet used the condition that $H \subseteq G'$, so it’s probably relevant. But I see no way to use it. Can I get a hint?
Hint: 4 means that every $xyx^{-1}H$, where $x\in G$ and $y\in G'$, there exists $y'\in G'$ such that $xyx^{-1}H=y'H$. But what you need is $xyx^{-1}$, not the hole coset of $H$. Let $e$ denote the identity element of $G$. Of course $e\in H$. So $xyx^{-1}=xyx^{-1}e\in xyx^{-1}H=y'H$. Indeed you'll need the assumption $H\subseteq G'$ here.
P.S: I find proofs of equivalences by chain of equivalences splendid!