Highly colloidal Eu-doped Gd2O3 nanoparticles(core-NPs) were synthesized by thermal decomposition via weak base at low temperature (150oC), subsequently, silica layers were deposited to increased colloidal stability, solubility, biocompatibility and no-toxicity at the environmental condition. XRD results indicate the highly purified, crystalline, single phase cubic phase Gd2O3 nanocrystals. TEM image shows the mesoporous thick silica layer was effectively coated over the core nanocrystals, which have irregular size with nearly spherical shape and a mean grain size is about 10-30 nm. Absorption spectra and zeta potential results in aqueous media revealed that solubility, colloidal stability, and biocompatibility character was enhanced from core to core-shell structure because of silica layer surface encapsulation. The samples demonstrate excellent photoluminescence properties (dominant emission 5D0→7F2 transition in red region at 610 nm) indicated the advantage to use in optical bio-detection and bio-labeling etc. The photoluminescence intensity of the silica shell modified core/shell nanoparticles were suppressed relatively core-nanoparticles, it indicates the multi-photon relaxation pathways arising from the surface coated high vibrational energy molecules of the silanol groups. The core/nSiO2/mSiO2 nanocrystals display strong emission (5D0→7F2) transition along with excellent solubility and biocompatibility, which may find promising applications in photonic based biomedical applications.