An experimental investigation on ultralow threshold laser and blue shift cooperative luminescence (CL) in a Yb3+ doped silica microsphere (YDSM) with continuous-wave 976 nm laser diode pumping is reported. The experimental results show that the YDSM emits laser oscillation with ultralow threshold of 2.62 μW, and the laser spectrum is modulated by the microsphere morphology characteristics. In addition, blue emission of YDSM is also observed with the increase of pump power, which is supposed to be generated by CL of excited Yb ion-pairs with the absorption of 976 nm photons and Si-O vibration phonons, and the process is explained with an energy level diagram. This property of the blue shift CL with phonons absorption in the Yb3+doped microcavity makes it attractive for the application of laser cooling based on anti-Stokes fluorescence emission, if the Yb3+doped microcavity made from with low phonon energy host materials.