The influence of addition of Y$_{2}$O$_{3}$ on microstructures and properties of zirconia ceramics was studied. The influence of ball milling time and the amount of added Y$_{2}$O$_{3 }$ on grain size, microstructures and properties of ZrO$_{2}$ is discussed. The results show that grains of ZrO$_{2 }$ and Y$_{2}$O$_{3 }$ can be refined, and the grain size of zirconia ceramic reduced, leading to improved mechanical properties of ceramics. Fine-grained 3Y-ZrO$_{2}$ ceramics can be prepared by appropriate addition of Y$_{2}$O$_{3 }$ and a common sintering process with good mechanical properties, that is, Vickers hardness and fracture toughness values being 1 128 kg/mm$^{2}$ and 10.03 MPa$\cdot $m$^{1/2}$, respectively.