Tried searching, but maybe couldn't phrase it correctly...

Basically, looking to create a Homebrew Magic Item that removes the Drow Sunlight Sensitivity/Disadvantage to Perception.

Any thoughts on how to code that?

Thx!

All you can do is have the Magic Item give the modifier Advantage - Perception, and make a note that it's only meant to cancel out Sunlight Sensitivity. It'll show both the green A and the red D on Perception when equipped, which implies making a straight roll at all times even though that would only apply in sunlight. Unfortunately there isn't a way to just make the D go away with a magic item.

OK.  That's how I started it, but then saw the A/D.  If there's no way to outright remove it, I can live with that and will denote in the description.

Thx

Also, wondering if there's any way to restrict to specific races. I.e. Only races with that associated penalty (e.g., Drow, Duergar)

You could require attunement by those particular subraces. Which is annoying since it takes an attunement slot, but at least that would take care of the situation.

Was hoping to not require attunement, though, I reckon I could have it Add an attunement slot.  Sort of a work-around, I guess.

Yeah, you could with the modifier Set - Attunement Slots, fixed value: 4. Unfortunately there isn't a Bonus - Attunement Slot modifier.

You could just list it in plain text and trust your players.