I am dazzled by the light is a correct sentence. But dazzle means the light is enchanting and you are enjoying its effect.
The second sentence is not correct. However, you can say, "The light's glare was too bright for me." Or "The glare of the light was blinding me."
Glare implies too bright a light, while dazzle implies something pretty.
Glare can also be used as a stare that is trying to tell someone they disapprove. For example, "The mother's glare stopped her little boy who was jumping on the chair."