Powder Plasma Arc Additive Manufacturing (PPA-AM) technique has tremendous potential for the practical application in medium-entropy alloys (MEAs). In this study, we investigated the effect of heat treatment on microstructural evolution, mechanical properties, and the work hardening behavior in the PPA-AM processed (CoCrNi)90Al5Ti5 MEA. The results show that the As-built specimen is a single-phase FCC structure, displaying <001> strong FCC texture in the deposition direction. The stacking faults (SFs) and dislocations were observed in the alloy, which formed the stacking fault networks and the Lomer-Cottrell locks structure. The plasticity of the alloy increased significantly after the high-temperature heat treatment, which can be attributed to the modifications of the microstructure, such as the weakening of the texture strength and the reduction of the stresses. Low-temperature heat treatment decreases the density of dislocations in the alloy, but promotes the generation of the co-lattice phase. The evolution of the dislocation density, texture strength, and precipitates significantly influenced the strain hardening behavior and mechanical properties. The tensile results showed that the strength and plasticity of the samples were increased after two-step heat treatment. The yield strength, ultimate tensile strength, and elongation to failure were 733 MPa, 1080 MPa, and 22.3%, respectively, which were 16.2%, 20.3%, and 15.5% higher than the As-built samples. This work elucidates the underlying mechanisms of heat treatment on the microstructure and mechanical properties of the alloy.