We report a CMOS integrated micro-LED array capable of generating discrete optical output power levels. A 16 × 16 array of individually addressable pixels are on-off controlled through parallel logic signals. With carefully selected groups of LEDs driven together, signals suitable for discrete transmission schemes are produced. The linearity of the device is assessed, and data transmission using pulse amplitude modulation (PAM) and orthogonal frequency division multiplexing (OFDM) is performed. Error-free transmission at a symbol rate of 100 MSamples/s is demonstrated with 4-PAM, yielding a data rate of 200 Mb/s. For 8-PAM, encoding is required to overcome the baseline wander from the receiver, reducing the data rate to 150 Mb/s. We also present an experimental proof-of-concept demonstration of discrete-level OFDM, achieving a spectral efficiency of 3.96 bits/s/Hz.