Eye health literacy is an important factor in determining eye health outcomes. Ophthalmic disorders are increasingly common due to various factors associated with ageing population and other important determinants of health such as socio-economic status, environmental, cultural, individual, behavioural, and biological factors. Therefore, understanding the importance of health literacy in promoting preventive practices, early identification, and prompt management of eye diseases is critical. Currently, glaucoma, diabetic retinopathy, and age-related macular degeneration are the leading causes of irreversible vision impairment. However, the impact of enhanced eye health literacy on these diseases has not been sufficiently studied. In this topical review, findings from relevant peer-reviewed articles published after 1998 are presented. The results indicate that enhancing knowledge about eye health and ophthalmic care can significantly contribute to the prevention and management of these conditions, and thus decrease the burden of vision impairment. Patients with adequate health literacy can make informed decisions about their health, adhere to treatment programs, and communicate effectively with healthcare providers. Educational level, socioeconomic status, age, gender, family history of eye disease, regular eye check-ups, and remoteness influence the level of health literacy across the world. However, due to differences in health infrastructure, geographical and cultural characteristics, research conducted in other countries is not necessarily applicable in Australia. In summary, despite the increasing burden of vision impairment, there is a lack of wholistic research regarding the status of eye health literacy in Australia and abroad, therefore suggesting a critical gap in research and universal eye health literacy tools.