Abstract It is known that oxyfluoride glasses can be used as the host for fluoride crystals that feature promising optical properties. This work demonstrates that the optical properties of the Er 3+ ‐Yb 3+ co‐doped oxyfluoride precursor glass‐ceramic (PGC) can be tailored by changing crystal structure through chemical variation (LaF 3 /BaF 2 = 0, 1/3; YF 3 /LaF 3 ratios = 0, 2/7, 4/7, 6/7, 1) and heat treatment. The strong correlations between the crystallization behavior, microstructure, and optical properties are revealed. It is found that the precipitated crystals such as BaF 2 , Ba 2 LaF 7 , Ba 2‐x La 1‐x Y x F 7‐2x (0 < x <1), and BaYF 5 are uniformly distributed in the glass matrices of PGC. Upon heat‐treatment, the crystallinity of PGC increases, whereas the crystal type remains unchanged. Both the up‐conversion luminescence and optical transmittance of the samples strongly depend on the substitution of one type of fluoride for another. Moreover, by taking advantage of the effect of crystal structure on the cross‐relaxation propensity of Er 3+ ions, it is feasible to tune the up‐conversion luminescence color from green to light yellow. It is unveiled that the enhanced cross‐relaxation arises from lattice shrinkage. This work provides guidance for optimizing the optical properties of rare‐earth‐doped oxyfluoride glass ceramics.