Embodiments of the present invention are directed to dual stage modular optical devices with insert digital diagnostics components. A first portion of a leadframe couples a first fabricated package including a light source and/or light detector to a second fabricated package with first opening for receiving inserts. A second portion of the leadframe couples the second fabricated package to a third fabricated package with a second opening for receiving inserts. A first component insert is coupled to the second fabricated package such that components of the first component insert can electrically interoperate with the light source and/or light detector. A second component insert is coupled to the third fabricated package such that components of the second component insert can electrically interoperate with components of the first component insert to implement digital diagnostics functions.