Every solid-state diode is a light-emitting diode (LED). The difference is that conventional solid-state diodes are not configured to produce sufficient light of the proper frequency, directed properly so it is useful as a source of visible light.
A solid-state diode is composed of two semiconducting layers, frequently made of crystalline silicon, that have been joined in a special way to make a junction. The junction is where the action takes place.
When negative voltage is applied to the anode and positive voltage is applied to the cathode, the charge carriers are attracted to the terminals, migrating away from the junction, which in this state is known as the depletion layer.
It happens that when an electron meets a hole, it drops into a lower energy level and emits a photon, the basic unit of light. Because of this property, an LED emits light when it is forward biased. When it is reverse biased, holes and electrons are not combining on an ongoing basis and there is no production of light.
Considered as a wave, the wavelength (and thus frequency) of the emitted light depends upon the energy band gap of the materials comprising the semiconductor junction. Silicon and germanium, conventional semiconducting materials, are not good for most LED applications. They are indirect bandgap materials, the holes and electrons combining by non-radiative transition. The semiconducting material of choice for LEDs is gallium arsenide, although with recent advances new semiconducting materials have entered the LED picture.
It is a LED not an LED.