We report an on-chip single-mode microlaser with a low threshold fabricated on erbium doped lithium-niobate-on-insulator (LNOI). The single-mode laser emission at 1550.5 nm wavelength is generated in a coupled microdisk via the inverse Vernier effect at room temperature, when pumping the resonator at 977.7 nm wavelength. A threshold pump power as low as 200 μW is demonstrated due to the high quality factor above 106. Moreover, the measured linewidth of the microlaser reaches 348 kHz without discounting the broadening caused by the utilization of optical amplifiers, which is, to our knowledge, the best result in LNOI microlasers. Such a single-mode microlaser lithographically fabricated on chip is in high demand by the photonics community.