This study looked at optimizing the composition of precursors for yttria nanopowder glycine–nitrate self-propagating high-temperature synthesis (SHS). Based on thermodynamic studies, six different precursor compositions were selected, including with excesses of either oxidant or fuel. The powders from the precursors of all selected compositions were highly dispersed and had specific surface areas ranging from 22 to 57 m2/g. They were consolidated by hot pressing (HP) with lithium–fluoride sintering additive and subsequent hot isostatic pressing (HIP). The 1 mm thick HPed ceramics had transmittance in the range of 74.5% to 80.1% @ 1μm, which was limited by optical inhomogeneity due to incomplete evaporation of the sintering additive. Two-stage HIP significantly improves optical homogeneity of the ceramics. It was shown that an excess of oxidizer in the precursor decreases the powders’ agglomeration degree, which forms large pore clusters in the ceramics.