The deposition of CuInO2 films was achieved for the first time through a dual target RF magnetron sputtering technique using Cu and In2O3 targets. It is found that the sputtering power of the Cu target has a significant effect on the structural, morphological, and optical characteristics of the films. The sputtering power of Cu was varied from 5 to 50 W while the sputtering power of In2O3 was held constant at 50 W. From the X-ray diffraction analysis, it was confirmed that pure-phase CuInO2 was obtained at a Cu sputtering power of 5 W. X-ray photoelectron spectroscopy analysis revealed that Cu exists in the oxidation state of 1+ in the films sputtered with 5 W Cu, further confirming the successful synthesis of single-phase CuInO2. Nanocrystalline growth was confirmed through scanning electron microscopy performed on all post-deposition annealed films. Further, it was observed that grain size increased from 18.49 to 63.34 nm as Cu sputtering power is increased from 5 to 50 W. The optical studies were performed on the post-deposition annealed films in the 300 to 800 nm wavelength range. The optical transmission and the optical bandgap were found to decrease with increase in the Cu sputtering power.