Six kinds of Ni60 alloy coatings with different percentage of Y2O3 were prepared by laser cladding. A metallurgical microscope was used to analyze the morphology of the cladding layer. Scanning electron microscopy and EDS energy spectrum analysis were used to characterize the microstructure and element segregation of the cladding layer. A Vickers microhardness tester was used to measure the hardness of the cladding layer. Finally, a friction and wear tester established the friction and wear properties of the cladding layer. The study results show that Y2O3 can significantly reduce the height of the cladding layer and increase the width of the cladding layer; it can also improve the structure refinement and element segregation of the cladding layer. The microhardness of the cladding layer is significantly improved compared to the Ni60 alloy coating without Y2O3, thereby enhancing the wear resistance of the coating.