Nd∶(Y0.9La0.1)2O3 transparent ceramics are fabricated with wet-chemical composite nano-powders and solid-state reaction nano-powders, respectively. Their microstructure, optical and spectral properties are investigated. The experimental results show that both samples own the same spectroscopic properties, while the samples fabricated by wet-chemical composite nano-powders have better optical properties due to the uniform mixing of the raw materials. The worse performances of the samples fabricated with solid-state reaction nano-powders are ascribed to the inhomogeneous dispersion of La2O3 in the processing of mechanical ball-milling, which cause unevenly grains and few left pores. Long time ball-milling will deteriorate the optical properties of the samples prepared by solid-state reaction method.