In2O3 nanostructure sensors were fabricated by arc-discharging a source composed of a graphite tube containing indium. The NO gas sensing properties, as well as the morphology, structure, and electrical properties, were examined at room temperature under UV light illumination. In particular, the response and recovery kinetics of the sensor at room temperature under various UV light intensities were studied. The maximum response signal was observed at an intermediate UV light intensity, which could be corroborated by a nano-size effect based on the conduction model of a resistive chemical nano sensor. The mechanism for the enhanced adsorption/desorption kinetics for NO in an air environment under UV light irradiation is discussed in detail. Furthermore, the general requirements of the sensor, including the stability, repeatability, and selectivity, are discussed.