An optoelectronic device includes a passivation layer of a dielectric material having a graded composition that varies with depth, whether continuous or stepwise, to provide a first index of refraction proximate to a semiconductor or conductor material and provide a second index of refraction adjacent to a surrounding material, such as an encapsulant. The resulting graded dielectric layer reduces Fresnel losses by reducing index of refraction mismatches between the adjacent semiconductor or conductor layer and the surrounding medium. Methods for forming graded dielectric layers include supplying a nitrogen-containing source gas at a declining flow rate or concentration, while supplying an oxygen-containing source gas an rising flow rate or concentration, to a deposition chamber.