Context. Despite their large number in the Galaxy, M dwarfs remain elusive objects and the modeling of their photosphere has long remained a challenge (molecular opacities, dust cloud formation). Aims. Our objectives are to validate the BT-Settl model atmospheres, update the M dwarf Teff-spectral type relation, and find the atmospheric parameters of the stars in our sample. Methods. We compare two samples of optical spectra covering the whole M dwarf sequence with the most recent BT-Settl synthetic spectra and use a χ2 minimization technique to determine Teff. The first sample consists of 97 low-resolution spectra obtained with New Technology Telescope (NTT) at La Silla Observatory. The second sample contains 55 medium-resolution spectra obtained at the Siding Spring Observatory (SSO). The spectral typing is realized by comparison with already classified M dwarfs. Results. We show that the BT-Settl synthetic spectra reproduce the slope of the spectral energy distribution and most of its features. Only the CaOH band at 5570 Å and AlH and NaH hydrides in the blue part of the spectra are still missing in the models. The Teff scale obtained with the higher resolved SSO 2.3 m spectra is consistent with that obtained with the NTT spectra. We compare our Teff scale with those of other authors and with published isochrones using the BT-Settl colors. We also present relations between effective temperature, spectral type, and colors of the M dwarfs.