Apodized diffraction grating with improved dynamic range

An optical diffraction grating includes a substrate and a diffraction surface comprising, for example, diffraction grooves. The diffraction grating has a spatially varying diffraction efficiency which increases or decreases as a function of distance from a reference location at which an incident light beam is received at the grating. Spatially varying the diffraction efficiency of the grating may be accomplished by selectively changing or modifying one or more grating design parameters such as the shape, size, depth, profile, pitch, and optical properties of the diffraction grooves at predetermined locations on the grating.