Yb:Sc2O3 transparent ceramics were fabricated by solid-state reaction and vacuum sintering method. CaO was added as sintering aids by a high energy ball milling. Transparent nearly-fully dense samples were obtained after 1840℃ sintefing. Using transmitted-light microscope we get the grain sizes are more than 100μm. Using spectrophotometer we get the absorption coefficient centered at 975 nm was 2.65 cm-1. The phosphorescence spectra showed that the line-widths (FWHM) at 975 and 1041 nm were about 4 and 10 nm and the lifetime of Yb ions in Sc2O3 transparent ceramics was about 883 μs. According to the absorption and fluorescence band centers of Yb:Sc2O3 transparent ceramics, the level scheme of Yb3+ ions in Sc2O3 ceramics could be gotten.