We investigate the optical transitions of GaNxAs1−x quantum wells (QWs) embedded in wider band gap AlGaAs. A combination of absorption and emission spectroscopic techniques is employed to systematically investigate the properties of GaNAs QWs with N concentrations ranging from 0 – 3%. From measurement of the photocurrent spectra, we find that besides QW ground state and first excited transition, distinct increases in photocurrent generation are observed. Their origin can be explained by N-induced modifications in the density of states at higher energies above the QW ground state. Photoluminescence experiments reveal that peak position dependence with temperature changes with N concentration. The characteristic S-shaped dependence for low N concentrations of 0.5% changes with increasing N concentration where the low temperature red-shift of the S-shape gradually disappears. This change indicates a gradual transition from impurity picture, where localized N induced energy states are present, to alloying picture, where an impurity-band is formed. In the highest-N sample, photoluminescence emission shows remarkable temperature stability. This phenomenon is explained by the interplay of N-induced energy states and QW confined states.