PurposeDiabetic retinopathy (DR) is a central root of blindness all over the world. Though DR is tough to diagnose in starting stages, and the detection procedure might be time-consuming even for qualified experts. Nowadays, intelligent disease detection techniques are extremely acceptable for progress analysis and recognition of various diseases. Therefore, a computer-aided diagnosis scheme based on intelligent learning approaches is intended to propose for diagnosing DR effectively using a benchmark dataset.Design/methodology/approachThe proposed DR diagnostic procedure involves four main steps: (1) image pre-processing, (2) blood vessel segmentation, (3) feature extraction, and (4) classification. Initially, the retinal fundus image is taken for pre-processing with the help of Contrast Limited Adaptive Histogram Equalization (CLAHE) and average filter. In the next step, the blood vessel segmentation is carried out using a segmentation process with optimized gray-level thresholding. Once the blood vessels are extracted, feature extraction is done, using Local Binary Pattern (LBP), Texture Energy Measurement (TEM based on Laws of Texture Energy), and two entropy computations – Shanon's entropy, and Kapur's entropy. These collected features are subjected to a classifier called Neural Network (NN) with an optimized training algorithm. Both the gray-level thresholding and NN is enhanced by the Modified Levy Updated-Dragonfly Algorithm (MLU-DA), which operates to maximize the segmentation accuracy and to reduce the error difference between the predicted and actual outcomes of the NN. Finally, this classification error can correctly prove the efficiency of the proposed DR detection model.FindingsThe overall accuracy of the proposed MLU-DA was 16.6% superior to conventional classifiers, and the precision of the developed MLU-DA was 22% better than LM-NN, 16.6% better than PSO-NN, GWO-NN, and DA-NN. Finally, it is concluded that the implemented MLU-DA outperformed state-of-the-art algorithms in detecting DR.Originality/valueThis paper adopts the latest optimization algorithm called MLU-DA-Neural Network with optimal gray-level thresholding for detecting diabetic retinopathy disease. This is the first work utilizes MLU-DA-based Neural Network for computer-aided Diabetic Retinopathy diagnosis.