Cubic Eu3+-doped Lu2O3 nanocrystals were synthesized via combined Pechini-foaming method. Doping concentration effect on the structural and luminescence properties was studied. It was found that the increase of Eu3+ concentration leads to the growth of unit cell parameters and red shift of Raman lines. The optimal doping concentration and shape of emission lines were studied upon different excitation mechanism. Radiative and nonradiative transition rates and Judd-Ofelt parameters were calculated using the model of 4f–4f intensity theory. The type of multipolar interaction resulting in luminescence concentration quenching was determined.