martin
The transimpedance amplifier converts current from the photodiode to a voltage usable by the oscilloscope (it basically amplify the signal for a more stable output).
The advantage of a combined/embedded design:
The integrated combination of photodiode and transimpedance amplifier on a single chip eliminates the problems commonly encountered in discrete designs, such as leakage current errors, noise pick-up, and gain peaking as a result of stray capacitance.