In the work the research on properties of an yttria nanopowder obtained by solution combustion synthesis (SCS) in terms of its application in ceramic technology is presented. In order to characterize the SCS reaction the decomposition of yttrium nitrate, glycine and their solution was investigated using differential thermal analysis coupled with FT-IR spectrometry of the gases emitted during the measurements. The product obtained in the SCS process was characterized in terms of its microstructure, particle size distribution and BET specific surface. Although the obtained powders showed nanoscaled structures, only after calcination at a temperature of 1100 °C nanosized particles were revealed. The calcined powder occurred in an agglomerated state (cumulants mean Zave = 1.3 µm). After milling particle size was successfully decreased to Zave = 0.28 µm. The deagglomerated powder was isostatically densified and tested for sintering ability. The obtained nanopowder showed very high sintering activity as the shrinkage onset was detected already at a temperature of about 1150 °C.