This paper exhibits systematic results for lateral light emitting diodes (LEDs) with various conditions. The simulation results and circuit model are both included to describe the current spreading effect at the same time. A fully 2-D model that solves Poisson and drift-diffusion equations to investigate the current flow and radiative recombination distribution specifies the uniformity of the carrier distribution, which is combined with the Monte Carlo ray tracing technique to calculate the light extraction efficiency (LEE). This paper focuses on the modulation of the transparent conducting layer. In addition, this paper will discuss bottom emission LEDs addressing the current spreading effect and LEE compared with top emission LEDs. We also examine the droop effect to verify our discussion. A thorough analysis provides deep insights for achieving high efficiency lateral LEDs.