Bi2O3, Y2O3 and MgO co-doped BaTiO3 (BT)-based X8R ceramics were synthesized successfully for the first time. The effects of the sintering temperature and Bi2O3, Y2O3 and MgO dopants on the dielectric properties were investigated systematically. Bi2O3 doping can increase the Curie temperature (Tc), but reduces the overall dielectric permittivity. On the other hand, Y2O3 doping is beneficial to the formation of core-shell microstructure and the increase of Tc, whereas MgO can prevent excessive Y2O3 from diffusing into grain core, and thereby further contributes to the generation of the core–shell microstructure. The generation of the typical core-shell microstructure was confirmed and investigated in detail by using transmission electron microscopy (TEM). It is argued that the synergistic effects of Bi2O3, Y2O3 and MgO co-doping in terms of the formation of the core-shell structure and the increase of Tc, can help improve the temperature stability of the dielectric permittivity effectively. Increasing the sintering temperature leads to an increase in the grain size, which in turn leads to an increase in the overall dielectric permittivity due to the grain size effect.