Yttrium oxide (Y2O3) nanoparticles have critical applications in many industries, including ceramics, optics, and biomedicine. However, conventional synthesis methods are typically cumbersome and time-consuming. Herein, a novel emulsion detonation method successfully achieved the one-step synthesis of Y2O3 nanoparticles. In this method, yttrium nitrate hexahydrate was uniformly dispersed in the emulsion explosive as a precursor and an auxiliary oxidizer. After the emulsion explosive was detonated in a detonation chamber, the detonation products were collected, purified and characterized by X-ray diffraction, Fourier transform infrared spectrometer, Raman spectrometer, X-ray photoelectron spectroscopy, field emission scanning electron microscopy, field emission transmission electron microscopy, and ultraviolet spectrophotometer. The results show that the as-synthesized powders are high-purity cubic phase yttrium oxide nanoparticles with a spherical-like morphology and an average particle size of approximately 30 nm. These Y2O3 nanoparticles have a wide (5.53 eV) energy band gap, close to the conventional methods. Based on detonation theory, thermochemical theory, and characterization results, this text discussed the mechanism of the Y2O3 nanoparticles synthesized by the emulsion detonation method. During detonation, the formation of the Y2O3 nanoparticles underwent three stages: the formation of the Y2O3 molecules by the collision of Y and O ions, the formation of the crystal nucleus at supersaturation concentration, and crystal growth. This study provides a novel, cost-effective method for efficiently synthesizing Y2O3 nanoparticles.