We present optical (6500-9200 Angstrom) spectroscopy of eight cool dwa
rfs detected in a 231 square degree ''Mini-survey'' of the Deep NEar I
nfrared Survey (DENIS) data. We are able to confirm that the spectral
types derived from the Mini-survey infrared spectroscopy are meaningfu
l. We provide a spectral sequence which extends beyond the M-dwarf ran
ge and into the proposed ''L'' class of dwarfs. The dominant spectral
features in the optical for these L-type dwarfs are resonance lines of
Cs I and molecular band heads of CrH and FeH. The other dominant feat
ure in these L-type spectra is a broad 600 Angstrom absorption dip cen
tered on 7700 A, which we identify with extremely strong (equivalent w
idth similar to several hundred Angstrom) absorption associated with t
he 7664,7698 Angstrom resonance doublet of KI. We find that model atmo
spheres which include the effects of molecular condensation without du
st opacity (to simulate rapid gravitational settling of dust grains) p
roduce significantly better agreement with observed optical spectra fo
r L-type dwarfs, than models including dust opacity. This suggests gra
vitational settling of dust grains plays an important role in L-dwarf
photospheres. The extreme strength of the KI resonance doublet, and di
sappearance of TiO and VO, and the consequent dominance of CrH and FeH
in L-dwarf spectra offer considerable prospects as sensitive effectiv
e temperature diagnostics, even at low spectral resolution.