In this study, Ho$^{3+}$ doped 0.825K$_{0.5}$Na$_{0.5}$NbO$_3$-0.175Sr(Yb$_{0.5}$Nb$_{0.5}$)O$_3$ luminescence transparent ceramics were prepared via the traditional solid-state sintering method. The structure and optical properties of the ceramics before and after polarization were studied at 40 kV cm$^{-1}$ for 0.5 h. With the increase of Ho content, the phase structure of the ceramics changed from a pseudo-cubic phase to the tripartite and the orthorhombic phases, and the light transmittance decreased. The ceramics demonstrated an up-conversion luminescence characteristic under the excitation of a 980 nm laser, and the emission wavelengths were 550 and 670 nm. The best up-conversion luminescence performance was obtained when the Ho content was 0.1%. Moreover, the polarization markedly enhanced the luminescence performance of the 0.825K$_{0.5}$Na$_{0.5}$NbO$_3$-0.175Sr(Yb$_{0.5}$Nb$_{0.5}$)O$_3$-0.1%Ho ceramics due to the increased possibility of energy-level radiative transition of rare-earth Ho$^{3+}$ ions and reduction of the $E$$_g$ value of the ceramic.