We report the synthesis of CuO nanoparticles using different solvents by a low cost sol-gel route. Evolution of structure, microstructure and optical absorption analysis of these nanoparticles were studied using X-ray diffraction (XRD) and UV-Visible spectrophotometer. XRD analysis indicated that the crystallite size and strain are higher for the CuO nanoparticle synthesized using propanol as solvent. Optical absorption analysis indicated the red shift of indirect band gap and the blue shift of direct band gap. In the present case, red shift is associated with the formation of surface defects whereas the blue shift is due to the quantum confinement effect seen for nanoparticle systems.