In this paper, we report the electrical and optical characteristics of Si delta-doped AlGaN cladding layers, p-cladding structure optimization and the impact on the efficiency of 340nm AlGaN UV LEDs. Compared to the uniformly doped n-AlGaN layer, adding Si Δ-doping layers reduced the sheet resistance by improving both the Hall mobility and carrier concentration. Increasing the number of Si Δ-doped layers further lowered the sheet resistance without cracking the material. The Δ-doped layers in n-Al0.3Ga0.7N improved the optical properties by enhancing near band edge emission as much as 2-fold relative to deep level emission. Additionally, Δ-doping in n-AlGaN layers had no detrimental effect on the optical transparency of the LEDs. The p-cladding layer was found to have a strong absorption at 340nm. Reducing the p-GaN cap layer from 35nm to 10nm tripled the light emission intensity. By optimizing the n- and p-AlGaN cladding layers, a highly efficient UV LED at 340nm was achieved with 1mW output under 800mA/mm2 DC drive current.