The inbred rice line designated DG263L is disclosed. Embodiments include the seeds of inbred rice line designated DG263L, the plants of inbred rice line designated DG263L, plant parts of inbred rice line designated DG263L, and methods for producing a rice plant produced by crossing rice DG263L with itself or with another rice variety. Embodiments include methods for producing a rice plant containing in its genetic material one or more genes or transgenes and the transgenic rice plants and plant parts produced by those methods. Embodiments also relate to rice cultivars, breeding cultivars, plant parts, and cells derived from inbred rice line designated DG263L, methods for producing other rice cultivars, lines or plant parts derived from inbred rice line designated DG263L, and the rice plants, varieties, and their parts derived from use of those methods. Embodiments further include hybrid rice seeds, plants, and plant parts produced by crossing DG263L with another rice cultivar.