Colorless distributed combustion (CDC) combustion technology offers significant advantages of ultra-low pollutants emission, stable operation and improved pattern factor for high intensity stationary gas turbines applications. Detailed knowledge on distributed combustion behavior is required to further deploy this technology. This paper reports the evolution of swirl flame shape, flame expansion and pollutants emission characteristics using propane, methane, and 20% and 40% hydrogen enriched methane fuels. The entrainment of hot reactive gases was simulated by diluting the inlet air stream with inert nitrogen or carbon dioxide. OH* chemiluminescence signatures, captured at different dilution levels, manifested gradual reduction of flame luminosity when CDC was approached. Flame boundaries derived using image threshold technique helped to visualize the broadened reaction zone under CDC conditions, which had much reduced chemiluminescence signal intensity. The rms to mean OH* signal variation at different dilution levels were analyzed to detect the initiation of CDC. The higher flame lift-off observed with CO2 dilution was due to higher heat capacity of CO2, resulting in greater flame speed reduction. Flame expansion, evaluated from the area encompassed within the flame boundary at different dilution levels showed a power-law behavior with both the diluents. Expansion of 4 to 5 times of initial flame volumes was observed under CDC using CO2 and N2 dilution, respectively. Significant reduction of NO and CO emission achieved under CDC was due to reduction of overall flame temperature, hotspot mitigation, and widened reaction zone occupying large flame volume, which makes it favorable for many practical combustor applications.