The scope of this chapter is to provide insights into the classification based on the significant factors causing dry eye. The etiological causes of dry eye have been classified broadly into two primary arms. The first arm, aqueous deficient dry eye (ADDE), illustrates malfunction of normal lacrimal secretion causing tear hyposecretion. ADDE is subdivided into Sjogren’s and the non-Sjogren’s syndrome. The former exclusively includes systemic autoimmune characteristics, while the latter comprises age-related disorders, genetic disorders, denervation in the lacrimal gland, and obstruction in tear secretion. The second arm, evaporative dry eye (EDE), explains the excessive loss of aqueous from the tear film despite the normal lacrimal secretion. Extrinsic EDE is with ocular surface pathology caused by vitamin A deficiency, contact lens wear, use of topical drugs with preservatives, and ocular surface diseases (allergic eye disease). The intrinsic EDE encompasses abnormalities in the meibomian lipid deficiency, low blink rate, and poor lid congruity. In brief, clinical tests to investigate the corneal epithelium integrity and the tear film have been discussed. This chapter aims to highlight the main etiologies of dry eye disease (DED) and current updates on techniques involved in diagnosing DED to help clinical practice.