Yttrium oxide–magnesium oxide (Y₂O₃–MgO) composite nanopowders were synthesized via three distinct methods: sol–gel, co-precipitation and glycine–nitrate process. The synthesized powders were calcined at various temperatures, and their microstructure, specific surface area and particle size were characterized. A comparative study was conducted to assess the impact of the synthesis method on the microstructure and transparency of the resulting ceramic sintering. Notably, the powder synthesized by the sol–gel technique exhibited the highest specific surface area and superior light transmittance, reaching a maximum of 85.33% at a wavelength of 5.31$\mu$m.