The Fourier expansion-based transmission line (TL) formulation has been modified using the Lanczos correction factor for the full-wave modal analysis of dielectric optical waveguides. Also, an algorithm for systematic determination of the optimum values for the main simulation parameters of the presented formulation has been proposed. These optimum parameters provide a trade-off between accuracy, speed, and memory usage and consequently improve the efficiency of simulations. This algorithmic formulation has been applied for the modal analysis of optical channel, strip, and strip-based slot waveguides, and good results have been obtained for dispersion characteristics and electromagnetic (EM) field distributions of their guided modes.