Ultrafine tungsten carbide and fine cobalt as well as nano yttrium oxide powders were used as the raw materials. The effects of hot-press below the eutectic temperature and conventional liquid phase sintering on the structures and properties of WC-20Co-1Y2O3 cemented carbide were studied. It is shown that hot-pressed alloy has the character of isotropic properties and microstructure with homogeneous and ultrafine WC grains. However, the ultrafine and fully-densified structure is developed at the cost of the presence of large amount of cobalt-lake (unevenly distributed binder phase), and thus lower strength. Yttrium oxide in the alloy cannot play the role of grain growth inhibitor fully when cemented carbide with high content of cobalt and ultrafine raw materials is sintered at high liquid phase sintering temperature. Peculiar platelet-enhanced bi-model structure is formed in WC-20Co-1Y2O3 cemented carbide by conventional liquid phase sintering, which points out that yttrium oxide in the alloy facilitates the formation of plate-like WC grain.