The primary feedback control apparatus in the outer retina is the sign-inverting feedback synapse between horizontal cells and cones. In many lower vertebrates horizontal cells release GABA in darkness, which opens Cl- channels in cones. Input-output relations of the feedback synapse reveal that the synaptic gain is light-dependent with the highest negative gain near the dark horizontal cell potential. The horizontal cell-cone feedback synapse improves the reliability of the photoreceptor output synapses. It also modulates the dynamic range and mediates color opponency and surround responses in second-order retinal neurons.