Hi Kristalee,
There is no setting in Windows that allows for this . . .
It is easy enough to do, but for security reasons, it is not easy for the general public to do. It involves cracking the dll controlling your webcam device and disabling the function that governs the LED . . .
Imagine is someone else did this to you, they take control of your webcam and disable the LED, you will not know you are being recorded and that can lead to some compromising footage being taken. That is why it is not fro the general user to be able to disable that LED . ..