Yb-doped barium zirconate (BaZrO3:Yb3+) was synthesized by a hydrothermal method at 100 °C. It presents a cubic perovskite crystalline phase, which is stable between 100 and 100 °C. Upon increasing the annealing temperature, two major changes are observed. (1) The near infrared (NIR) absorption band of Yb3+ decreases, and an enhancement in both the NIR emission of Yb3+ single ion and visible emission of Yb3+ pairs occurs, which is attributed to the reduction in impurities. (2) The annealing process induces new absorption bands in the ultraviolet-visible (UV-vis) region that increase as annealing temperature increases. These results suggest that reduction in Yb3+ to Yb2+ is taking place. The visible emission is considered to be a cooperative emission from Yb3+ pairs. Under UV and visible excitation, no emission of Yb2+ ions was observed. This suggests that the broadband absorption in the UV-vis region might be related to F color centers, which are responsible for the inhibition of the Yb2+ ion emission.