An optical modulator is a device which is used to modulate a beam of light. The beam may be carried over free space, or propagated through an optical waveguide. Depending on the parameter of a light beam which is manipulated, modulators may be categorized into amplitude modulators, phase modulators, polarization modulators etc. Often the easiest way to obtain modulation of intensity of a light beam, is to modulate the current driving the light source, e.g. a laser diode. This sort of modulation is called direct modulation, as opposed to the external modulation performed by a light modulator. For this reason light modulators are, e.g. in fiber optic communications, called external light modulators.
With laser diodes where narrow linewidth is required, direct modulation is avoided due to a high bandwidth "chirping" effect when applying and removing the current to the laser.
Read more about Optical Modulator: Classification of Optical Modulators
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