Cu-doped ZnO powders have been successfully synthesized by the sol-gel method in different sintering atmospheres, including argon and air, respectively. The effects of the sintering atmosphere on the structure, magnetic and optical properties of Cu-doped ZnO were investigated in detail by X-ray diffraction, X-ray photoelectron spectroscopy, X-ray absorption spectroscopy, vibrating sample magnetometer and photoluminescence measurements. The results showed that the Cu-doped ZnO powders sintered in Ar had a hexagonal wurtzite structure without any secondary phase, however, CuO was observed in the sample sintered in air. From the magnetic and photoluminescence spectra, it could be seen that the sintering atmospheres strongly influenced the magnetic and optical properties of the powders.