This study investigates the influence of CoO doping on concentration and characteristics of nano-sized cavities in Li₂SO₄-MgO-P₂O₅ glasses using positron annihilation lifetime spectroscopy (PALS). These defects are known to significantly impact the physical properties of glasses. Glasses with compositions of 20 Li₂SO₄-20MgO-(60-x) P₂O₅: x CoO (0 ≤ x ≤ 1.0 mol%), were prepared using melt-quench technique. PALS analysis revealed a strong dependence of positronium (e⁺- e⁻ pair) lifetime on CoO concentration. The analysis of the results further indicated that the fraction of free volume Δf/f0) and cavity radius (R) reached minimum values between 0.6 and 0.8 mol% CoO, but increased with further CoO doping. This suggests that cobalt ions prefer Oh sites, act as network modifiers, and create a larger concentration of free volume defects when CoO is increased beyond 0.8 mol%. Notably, the PALS-derived free volume defect concentration with CoO concentration is found to follow nearly same trend exhibited by the results of optical absorption and AC conductivity studies.