This review provides an overview of the key aspects of designing ionophore-based optical sensors (IBOS). Exact response functions are developed and compared with a simplified, generalized equation. We also provide a brief introduction into less established but promising working principles, namely dynamic response and exhaustive exchange. Absorbance and fluorescence are the main optical readout strategies used in the evaluation of a sensor response, but they usually require a robust referencing technique for real-world applications. Established referencing schemes using IBOS as well as those from other optical sensors are also discussed. Finally, the power of recently developed photoresponsive ion extraction/release systems is outlined and discussed in view of dynamically switchable IBOS or regenerative exhaustive exchange IBOS.