Achieving a combination of real-time diagnosis and therapy in a single platform with sensitive thermometry and efficient heat production is a crucial step towards controllable photothermal therapy. Here, Nd3+-doped Y2O3 nanoparticles prepared using the combined Pechini-foaming technique operating in the first and second biological windows were demonstrated as thermal sensors within the wide temperature range of 123-873 K, and as heaters with a temperature increase of 100 K. Thermal sensing was performed based on various approaches: luminescence intensity ratio (electronic levels; Stark sublevels), spectral line position and line bandwidth were used as temperature-dependent parameters. The applicability of these sensing parameters, along with relative thermal sensitivity and temperature resolution, are discussed and compared. The influence of Nd3+-doping concentration on thermometer and heater efficiency was also investigated.