The luminescence modulation based on photochromic reaction is universally applied in anti-counterfeiting applications. In this investigation, the Yb3+ and Ho3+ co-doped Sr2SnO4 ceramics were prepared by a conventional high temperature solid-state reaction. The basic microstructure and optical properties of the ceramics are analyzed. It is found the 280 nm irradiation can induce a photochromic reaction in the Sr2SnO4:xYb3+/Ho3+ ceramics, and the 480 nm irradiation can partially decolor the colored ceramics. Based on the photochromic reaction, the luminescence intensity modulation using the UC and DC modes has been investigated. The luminescence modulation ratio based on DC mode is much higher than that based on UC mode, which is ascribed to the larger absorption of the sample at 435 nm relative to the UC excitation wavelength. The present study results reveal the mechanism of the modulation difference of the UC and DC mode.