As an urgent problem, cancer has boosted the development and application of many treatment technologies in biomedicine. Photothermal therapy with precise control for tumors has gained more and more attention as a promising technology in biomedical fields. In this work, rare earth ions-doped Ba2LaF7 nanocrystals have been successfully developed by the high-temperature solid-phase method as the core material in a multi-functional system. Optical temperature measurement based on fluorescence intensity ratio improves sensitivity by widely separating Er3+ and Nd3+ emission bands. Meanwhile, the relative sensitivity increases with increasing temperature. From the comparison between the fitting curve and the actual temperature, it can be concluded that the nanocrystals have a good photothermal response to the laser pumping power and can even be used for photothermal imaging. On this basis, to study its optical measurement and photothermal conversion performance, we made a multifunctional system acting on biological tissues. The results suggest that the developed material has a potential application in bio-targeted photothermal therapy.