The present paper systematically investigated the correlation of the starting powder characteristics and optical properties of neodymium doped transparent Y2O3(Nd:Y2O3) ceramics by hot pressing without a subsequent hot isostatic pressing (HIP) treatment. It was found that the in-line transmittance of Nd:Y2O3 was improved by using coarser primary particle size of Y2O3 and Nd2O3. Additionally, an increase in the hot pressing temperature from 1500 to 1600 °C was effective for improvement on optical qualities of Nd:Y2O3 ceramics without an exaggerated grain growth. These results demonstrate the possibility of fabricating highly transparent ceramics by a simple and cost-effective powder process and sintering technique.