Fine AION powders (D50 = 607 nm) with high sintering activities were synthesized by a high-efficiency solution combustion-based method, and a high-transmittance AlON ceramics can be achieved by a subsequent sintering process. Moreover, the influences of various aluminum resources (Al(NO3)3, AlCl3 and Al2(SO4)3) on the morphology of precursors and nitride-functionalized products have been studied in detail. Using Al(NO3)3 as aluminum source resulted in more active precursors and was beneficial for the preparation of ultrafine AlON powders. Then, single-phase AlON powders were obtained by calcining precursors at 1700 °C for 10 min, while residual Al2O3 was observed in the calcined products synthesized by other two aluminum sources. As a result, transparent AlON ceramics with high in-line transmittance of 85.9% at 2 μm were obtained. This research provides valuable reference for rapid preparation of AlON powders and transparent ceramics.