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LED TV is a member of the LCD TV family. The display screen on a LED is a liquid crystal display the same as it is on any other LCD TV. The main difference between the two results from the different backlighting techniques which may change the picture quality dramatically.
Traditional LCDs have used fluorescent lighting from tubes while LED TVs use Light Emitting Diodes to light the LCD panel.

CONTRAST / BLACK LEVELS
Traditional LCDs always have their backlight ON when the TV is on. To create black areas the screen must block the light by twisting the crystals to an OFF position, often resulting in a lower contrast ratio. This is a shortcoming in LCD technology that LED TVs with their local dimming are attempting to fix. With the controlled backlighting the LEDs can be dimmed in dark areas of the picture to create darker blacks and better details.

VIEWING ANGLES
While traditional LCDs have improved their useable viewing angles over the years this is still a shortcoming of the technology itself and even the best LCDs will suffer from contrast degradation when viewed from angles wider than around 30 degrees off center. The LED backlit LCDs we've seen have done a fantastic job of correcting this issue and have viewing angles that rival plasma TVs (but at a much higher price).

FUNCTIONAL CONSIDERATIONS
LCD and LED are immune to screen burn-in so they are equally well suited for computer use.

FAST-MOVING VIDEO PLAYBACK
Displaying fast moving video is a function of the response time and refresh rate in LCD and LED televisions. The type of backlighting in the TV has no effect on the reproduction of fast moving video. You will want to compare response times and refresh rates when making a purchase decision.

LONGEVITY
Most manufacturers are claiming approximately 100,000 hours lifetime for their televisions. LED backlit televisions are brand new and don't have much of history record. Although LED televisions do not have much history they should have an advantage since the fluorescent style backlighting used in traditional LCDs ever so slightly change color hue over time. Light emitting diode (LED) technology should not have as much degradation over time. Quality of manufacture for either technology will also matter.

OTHER CONSIDERATIONS- PRODUCTION SIZE AND COST
LCD TVs are cheaper then LEDs, but as demand raising so is the price dropping. Eventually LEDs will be the same prices as LCDs.

POWER CONSUMPTION
The local dimming LED TVs we've come across have used quite a bit more power than a traditional LCD TV in the same screen size. This type of LED television approaches plasma displays in power usage. The edge lit LED televisions use less power than an LCD of the same size. ADVANTAGE: 1st: Edge lit LED, 2nd LCD TV (fluorescent), 3rd: Local dimming LED.

ENVIROMENTAL
LCD televisions use mercury in the manufacturing process versus the LED tv which does not! Mercury is very bad for the environment.

You can easily conclude that the LED is better