Do you have a high minus number spectacle power?
What the Ophthalmologist probably means is, there is stretching of the peripheral retina, but no immediate tears or severity seen. Sometimes they remain as they are, without worsening, hence observe. Means, you continue going for a regular yearly checkup (which you anyhow should, in view of
Diabetes), and in case any such progression towards a tear happening is seen, it can be caught early and treated.
In the meanwhile watch for symptoms like a shower of black dots (floaters) or flashes in the eyes. Then even if not time for your yearly checkup, should get yourself tested
Next Steps
watch for symptoms. regular yearly checkups
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