Two dimensional (2D) layered hybrid lead halide perovskites are a fascinating class of semiconductors displaying a plethora of interesting optoelectronic properties with potential for application in solar cells, light emitting diodes, etc. Most of these properties can be linked to their repeating quantum well-like structures providing 2D excitons. In this perspective, we discuss how dielectric confinement of excitons originates in these layered hybrid perovskites, and then, how it can be used to tune the excitonic properties. In particular, we discuss the recent theoretical and experimental advances correlating dielectric confinement with chemical composition, excitonic binding energy, and optoelectronic property. The freedom from the restrictions of the Goldsmith tolerance factor allows the synthesis of hundreds of compositions of 2D layered hybrid perovskites by independently varying the organic and inorganic layers. We envisage that the combination of this compositional flexibility with the concepts of dielectric confinement discussed in this perspective would be a path forward for designing novel optoelectronic materials.