diff --git a/esphome/components/gree/gree.cpp b/esphome/components/gree/gree.cpp
index f47be4aea03..0e02f20080c 100644
--- a/esphome/components/gree/gree.cpp
+++ b/esphome/components/gree/gree.cpp
@@ -37,7 +37,6 @@ void GreeClimate::transmit_state() {
   remote_state[1] = this->temperature_();
 
   if (model == GREE_YAN) {
-    remote_state[2] = 0x20;  // bits 0..3 always 0000, bits 4..7 TURBO, LIGHT, HEALTH, X-FAN
     remote_state[3] = 0x50;  // bits 4..7 always 0101
     remote_state[4] = this->vertical_swing_();
   }
@@ -61,7 +60,6 @@ void GreeClimate::transmit_state() {
   }
 
   if (model == GREE_YAA || model == GREE_YAC || model == GREE_YAC1FB9) {
-    remote_state[2] = 0x20;  // bits 0..3 always 0000, bits 4..7 TURBO, LIGHT, HEALTH, X-FAN
     remote_state[3] = 0x50;  // bits 4..7 always 0101
     remote_state[6] = 0x20;  // YAA1FB, FAA1FB1, YB1F2 bits 4..7 always 0010
 
diff --git a/esphome/components/gree/gree.h b/esphome/components/gree/gree.h
index c2616295735..a85878e764d 100644
--- a/esphome/components/gree/gree.h
+++ b/esphome/components/gree/gree.h
@@ -76,6 +76,12 @@ static constexpr uint8_t GREE_PRESET_NONE = 0x00;
 static constexpr uint8_t GREE_PRESET_SLEEP = 0x01;
 static constexpr uint8_t GREE_PRESET_SLEEP_BIT = 0x80;
 
+// Mode bits stored in remote_state[2] bits 4..7 for YAN/YAA/YAC/YAC1FB9.
+static constexpr uint8_t GREE_MODE_BIT_TURBO = 0x10;
+static constexpr uint8_t GREE_MODE_BIT_LIGHT = 0x20;
+static constexpr uint8_t GREE_MODE_BIT_HEALTH = 0x40;
+static constexpr uint8_t GREE_MODE_BIT_XFAN = 0x80;
+
 // Model codes
 enum Model : uint8_t { GREE_GENERIC, GREE_YAN, GREE_YAA, GREE_YAC, GREE_YAC1FB9, GREE_YX1FF, GREE_YAG };
 
@@ -103,7 +109,7 @@ class GreeClimate final : public climate_ir::ClimateIR {
   uint8_t preset_();
 
   Model model_{};
-  uint8_t mode_bits_{0};  // Combined mode bits for remote_state[2]
+  uint8_t mode_bits_{GREE_MODE_BIT_LIGHT};  // The display light is on until a switch says otherwise
 };
 
 }  // namespace esphome::gree
diff --git a/esphome/components/gree/switch/__init__.py b/esphome/components/gree/switch/__init__.py
index 9bec3751d6b..b48d32b9001 100644
--- a/esphome/components/gree/switch/__init__.py
+++ b/esphome/components/gree/switch/__init__.py
@@ -17,12 +17,22 @@ CONF_HEALTH = "health"
 CONF_XFAN = "xfan"
 CONF_GREE_ID = "gree_id"
 
-# Switch configurations: (config_key, display_name, bit_mask, icon)
+# Switch configurations: (config_key, display_name, mode_bit, icon)
 SWITCH_CONFIGS = (
-    (CONF_TURBO, "Gree Turbo Switch", 0x10, "mdi:car-turbocharger"),
-    (CONF_LIGHT, "Gree Light Switch", 0x20, "mdi:led-outline"),
-    (CONF_HEALTH, "Gree Health Switch", 0x40, "mdi:pine-tree"),
-    (CONF_XFAN, "Gree X-FAN Switch", 0x80, "mdi:wall-sconce-flat"),
+    (
+        CONF_TURBO,
+        "Gree Turbo Switch",
+        gree_ns.GREE_MODE_BIT_TURBO,
+        "mdi:car-turbocharger",
+    ),
+    (CONF_LIGHT, "Gree Light Switch", gree_ns.GREE_MODE_BIT_LIGHT, "mdi:led-outline"),
+    (CONF_HEALTH, "Gree Health Switch", gree_ns.GREE_MODE_BIT_HEALTH, "mdi:pine-tree"),
+    (
+        CONF_XFAN,
+        "Gree X-FAN Switch",
+        gree_ns.GREE_MODE_BIT_XFAN,
+        "mdi:wall-sconce-flat",
+    ),
 )
 
 SUPPORTED_MODELS = {
@@ -39,7 +49,10 @@ CONFIG_SCHEMA = cv.Schema(
             cv.Optional(key): switch.switch_schema(
                 GreeModeBitSwitch,
                 icon=icon,
-                default_restore_mode="RESTORE_DEFAULT_OFF",
+                # The display light was on before the switches existed, so it stays on by default
+                default_restore_mode="RESTORE_DEFAULT_ON"
+                if key == CONF_LIGHT
+                else "RESTORE_DEFAULT_OFF",
                 device_class=DEVICE_CLASS_SWITCH,
                 entity_category=ENTITY_CATEGORY_CONFIG,
             )