I've been using the 1MB D1 Mini lite clones with WLED..... it's been a bit of a challenge to get them to flash properly. Especially when compling my own build of the firmware
esphomeflasher defaults to using the qio method. DOUT seems to work..
esptool --port /dev/ttyUSB0 write_flash --flash_mode dout --flash_size 1MB 0x000 esp01_1m/firmware.bin
Aircookie recommend 4MB boards.. quoting his release notes warning here:
Note regarding ESP01:
ESP01 with 512k flash no longer supports Alexa, Blynk or Hue sync interfaces. If you use them, please do not update.
ESP01 with 1MB flash either supports OTA updates OR the above interfaces, just choose the respective binary.
From the next version onward, it will very likely be impossible for me to maintain 512k ESP01 support.
ESP01 1M will stay supported, although OTA updates will not be possible.
To get the most out of WLED, I highly recommend you to upgrade to a board with 4MB flash.
Sorry for the inconvenience!