GaN-based micro-size light-emitting diodes (µLEDs) have a number of appealing and distinctive benefits for display, visible-light communication (VLC), and other novel applications. The smaller size of LEDs affords them the benefits of enhanced current expansion, less self-heating effects, and higher current density bearing capacity. Low external quantum efficiency (EQE) resulting from non-radiative recombination and quantum confined stark effect (QCSE) is the serious barrier for applications of µLEDs. In this work, the reasons for the poor EQE of µLEDs are reviewed, as well as the optimization techniques for improving the EQE of µLEDs.