Preheat the oven to 350°F. Grease a 9-by-5-inch loaf pan with oil and set aside.
Add the granulated sugar and lemon zest to a large bowl and, using clean hands, rub the zest into the sugar to release the oils and flavors. Whisk in the sour cream, eggs, ½ cup oil, 2 tablespoons of the lemon juice, and food coloring (if using) until smooth.
In a medium bowl, whisk together the baking powder, baking soda, salt, and 2 cups of the flour. In another medium bowl, toss the blueberries with the remaining 1 tablespoon flour and set aside. Fold the flour mixture into the egg mixture until just combined. Fold in the blueberries.
Transfer the batter to the prepared loaf pan, smoothing the top with a spoon or small offset spatula. Bake until golden and a toothpick inserted in the center comes out clean, 1 hour to 1 hour 10 minutes, covering with foil to prevent excess browning after 40 minutes.
Let cool in the pan for 10 minutes then place a wire cooling rack over the pan and flip to remove the bread. Place the bread right-side up and let cool completely, about 1 hour.
Meanwhile, in a medium bowl, stir together the powdered sugar, butter, and remaining 3 tablespoons lemon juice. Add water, 1 teaspoon at a time, until a thick, but pourable consistency is achieved.
Pour the glaze over the cooled loaf, allowing it to drip down all sides. Let sit for 30 minutes to set before slicing and serving.