5 at.-% Yb3+ doped (La0.10Y0.90)2O3 transparent ceramics are fabricated by using commercial nanopowders in H2 atmosphere. Effect of the heat-treatment on the structure, spectral properties of (Yb0.05La0.10Y0.85)2O3 transparent ceramics is investigated. Laser grade ceramic samples are fabricated, and a diode-pumped laser is demonstrated, the maximum output power of 920 mW at 1 075 nm is obtained with a slope efficiency of ~31%, the laser pulse as short as 730 fs is also realized at the central wavelength of 1 033 nm.