Visible light communication (VLC) has gained attraction for its use in high-speed wireless connectivity leveraging LED lighting elements. Orthogonal Frequency Division Multiplexing (OFDM) is an attractive modulation scheme due to its spectral efficiency and resilience to multipath distortion. However, the nonlinear electro-optic transfer characteristics of optical components introduce signal clipping and quantization noise which corrupt OFDM signals. This paper provides an in-depth analysis of clipping and quantization noise to quantify the impact of LED nonlinearities on OFDM-based VLC system performance. Detailed mathematical models are derived for clipping distortions caused by LED optical power saturation and quantization errors from ADC/DAC finite precision in the modulator and driver circuitry. This analysis is quantified through simulations of the degradations in terms of error vector magnitude (EVM), signal-to-noise ratio (SNR) loss, and bit error rate (BER) under varying clipping ratios and quantization bit-depths. The 16-QAM OFDM transmission shows that the LED driver should possess at least 12 dB signal linear dynamic range and 3-bit quantization to restrict SNR penalty within 3 dB. Adaptive tone mapping and digital pre-distortion techniques are examined to compensate for intensity distortions enabling high-speed OFDM transmission over VLC links.