A variable ice storage assembly for a refrigerator includes a storage cavity adapted to receive ice from an ice maker. The storage assembly is positioned between a light emitter and a receiver of an ice level sensor. The storage assembly can be utilized in a non-reflecting configuration wherein the ice level sensor functions in a standard manner, or a reflecting configuration wherein the sensing level is effectively lowered within the storage assembly. In the reflecting configuration, first and second mirrored inserts, supported by respective insert portions on the storage assembly, cooperate with first and second reflecting plates on the storage assembly to redirect light from the emitter in a circuitous path. A user may position the mirrored inserts at various angles, depending on the level of ice desired within the storage assembly. The storage assembly may be utilized alone, or as in insert within an ice bucket.