Designing of a nanoscale Quantum Well (QW) heterostructure with a well thickness of ∼60 Å is critical for many applications and remains a challenge. This paper has a detailed study directed towards designing of In_0.29Ga_0.71As_0.99N_0.01/GaAs straddled nanoscale-heterostructure having a single QW of thickness ∼60 Å and optimization of optical and lasing characteristics such as optical and mode gain, differential gain, gain compression, anti-guiding factor, transparency wavelength, relaxation oscillation frequency (ROF), optical power and their mutual variation behavior. The outcomes of the simulation study imply that for the carrier concentration of ∼2 × 10¹⁸cm⁻³ the optical gain of the nano-heterostructure is of 2100 cm⁻¹ at the wavelength is of 1.30 μm. Though the obtained gain is almost half of the gain of InGaAlAs/InP heterostructure, but from the wavelength point of view the InGaAsN/GaAs nano-heterostructure is also more desirable because the 1.30 μm wavelength is attractive due to negligible dispersion in the silica based optical fiber. Hence, the InGaAsN/GaAs nano-heterostructure can be very valuable in optical fiber based communication systems.