Transparent ceramics are emerging as future materials for lasers, scintillation, and illumination. In this paper, an interesting and surprising phenomenon in YAG transparent ceramics is reported. UV light leads to significant changes in the microstructure of open volume defects and nano clusters as well as in the optical properties. Light-induced lattice relaxation is suggested as the mechanism behind this intriguing behavior. The complex F-type color center with broad absorption bands is caused by the aliovalent sintering additives (Ca2+/Mg2+) and Fe ion impurities. Two individual peaks in the thermoluminescence spectra illustrate both shallow and deep level traps. From positron annihilation lifetime data, vacancy clusters and nanovoids are detected and characterized, although these free-volume defects could not be observed by high-resolution transmission electron microscopy. The solarization induced by UV irradiation is associated with a change in the structure and size of defect clusters due to lattice relaxation. Therefore, this work shows how UV irradiation leads not only to a change in the charge state of defects, but also to a permanent change in defect structure and size. It significantly affects the optical properties of YAG ceramics and their performance in lasers and other optical applications. These results are crucial for advancing transparent ceramics technology.