In this study, a comprehensive analysis of emission in erbium-doped and erbium and ytterbium co-doped fluoroindate glasses has been presented. The luminescence of the erbium transitions and the effect of ytterbium co-doping under 488, 808 and 976 nm laser excitation have been discussed. Optimization of rare-earth (RE) ions doping concentration and the energy transfer processes related to the sensibilization effect in Er3+/Yb3+ co-doped fluoroindate glasses focusing on the reciprocal distribution of radiative transitions, energy transfer parameters, and lifetimes have been analyzed. The luminescence consists of several bands in the visible (525, 546 and 660 nm) and the infrared (1550 and 2700 nm) spectral regions that correspond to characteristic radiative energy transitions within the erbium ions. In glasses co-doped with the Er3+/Yb3+ system, an augmentation in the emission intensity was observed in the visible and at 1550 nm, while a decrease was observed in the 2700 nm infrared band. The increase of the Yb3+: 2F5/2 lifetime under 488, 808 and 976 nm excitation showed significant Er3+: 4I11/2 → Yb3+: 2F5/2 back energy transfer. Based on the analysis of the available literature, it can be concluded that energy transfer upconversion and cooperative energy upconversion play a significant role in modulating luminescence intensity values within the examined emission bands. This effect is likely enhanced due to the incorporation in a low phonon energy glass matrix. As a result of the above optimization, a glass optical fiber co-doped with 0.8 YbF3/1.4 ErF3 (in mol%) was drawn and characterized, showing a strong emission at 2.77 μm. The optimized Er3+/Yb3+ co-doped fluoroindate glass and glass optical fiber confirmed their ability to be used in the visible and near-infrared spectral regions as efficient optical fiber sources.