Abstract. For inversions of the GPS radio occultation (RO) data in the neutral atmosphere, this study investigates an optimal transition height for replacing the standard ionospheric correction using the linear combination of the L1 and L2 bending angles with the correction of the L1 bending angle by the L1–L2 bending angle extrapolated from above. The optimal transition height depends on the RO mission (i.e., the receiver and firmware) and is different between rising and setting occultations and between L2P and L2C GPS signals. This height is within the range of approximately 10–20 km. One fixed transition height, which can be used for the processing of currently available GPS RO data, can be set to 20 km. Analysis of the L1CA and the L2C bending angles shows that in some occultations the errors of standard ionospheric correction substantially increase around the strong inversion layers (such as the top of the boundary layer). This error increase is modeled and explained by the horizontal inhomogeneity of the ionosphere.