I haven't heard of this treatment either, but it certainly would be a very bad treatment for diabetic retinopathy.
In DR, the problem starts with loss of retinal capillary pericytes. Radiation damages retinal capillary endothelial cells, and simultaneous damage to both of these cells is a cumulative insult to the retinal capillaries & makes the retinopathy worse. This is why radiation retinopathy is much worse in diabetics. The neurosensory retina itself, like the CNS, is relatively radioresistant & so radiation treatment would only make the ischaemia worse without decreasing metabolic load.
Maybe it was a diagnostic test of some sort. Andrew makes a good point that retinography sounds like some sort of imaging procedure.