This study investigated drivers’ visual perception of information displayed in LED traffic signs under different levels of environmental luminance. Concerning the information displayed, the environmental luminance comprised four luminance contrasts, two arrow types, and three environmental luminances, which were used to identify the visibility of traffic signs at the reading distance. Regarding visible distance, visibility involved reading starting and end points, extent of glare, comfortable distance, and glare distance. According to the study results obtained by using a highly reliable glare assessment method and studying the LED traffic signs, the lower the luminance contrast of traffic signs was the higher glare the participants perceived. A luminance contrast of 6200:2066 cd/m2 provided the farthest comfortable and glare distances, enabling drivers to notice the signs comparatively earlier and have sufficient time to react accordingly. Overall, arrow type “<<<” outperformed “â†” because the former was easier for drivers to read and created less glare. Regarding environmental luminance, traffic signs displayed in high and medium luminance environments (i.e., extremely sunny and cloudy days, respectively) each featured their own advantage, whereas those displayed in low luminance environments (nights) have to be further improved.