Heat treatment is the critical step in achieving a refined microstructure and enhanced mechanical properties of TiAl-based alloys. This study investigated the influence of heat treatment temperature, cooling method, and heat treatment time on the microstructure and mechanical properties of an extruded powder metallurgy Ti-48Al alloy, and achieved the control of fully lamellar fine microstructures and the enhancement of performance through a simple heat treatment, rather than the traditional approach of homogenization followed by heat treatment. The results indicate that the heat treatment temperature determines the type of microstructure, while the cooling rate dictates the lamellar width. As the heat treatment temperature was increased from the two-phase region to the α single-phase region, the microstructure transitioned from duplex to near lamellar, and the alloy strength initially increased and then decreased, influenced by both the lamellar colony ratio and grain size. A rapid cooling rate (water quenching) induces a non-diffusive massive phase transformation, whereas a slow cooling rate (air cooling) gradually forms α2/γ lamellar colonies. Therefore, a suitable heat treatment regime for the powder metallurgy Ti-48Al alloy was determined to be 1340 °C/5 min/air cooling. The microstructure of the alloy was near lamellar, consisting of lamellar colonies approximately 50 μm and a small number of γ equiaxed grains of about 10 μm. Subsequently, the alloy exhibited a room temperature tensile strength of 784 MPa and a yield strength of 763 MPa, representing improvements of 17.0% and 38.7% over the extruded alloy, respectively. This research provides a reference for establishing a heat treatment process for powder metallurgy TiAl alloys.