Y3+/Er3+ ions co-doped oxyfluoride glass-ceramics were investigated to realize efficient 2.7 μm emission. Incorporation of Er3+ ions into the fluoride nanocrystals was confirmed by the X-ray diffraction patterns, absorption spectra, emission spectra and Judd-Ofelt analysis. With an increase in the Y3+/Er3+ ratio, radiative lifetime, quantum efficiency and emission cross section of the 2.7 μm emission from Er3+ ions were greatly improved, due to the reduced effective concentration of Er3+ ions and suppressed cross relaxation processes among Er3+ ions in the fluoride nanocrystals. Compared to other Er3+-doped glasses, Y3+/Er3+ co-doped oxyfluoride glass-ceramics showed a promising potential for gain medium.