We report on the spectral properties and laser performances of a novel, to the best of our knowledge, Tm,Ho:CaY0.9Lu0.1AlO4 (Tm,Ho:CYLA) crystal. The polarized absorption spectra, luminescence spectra, and fluorescence lifetime are systematically investigated, presenting a broad and smooth luminescence band. Furthermore, a maximum continuous wave (CW) laser output power of 0.51 W at 2092 nm is obtained under an absorbed pump power of 2.89 W, corresponding to a slope efficiency of 20.4%. The beam quality factors (M2) are measured to be 1.04 in both the x and y axes. A tuning range of 123.4 nm, from 2017.8 nm to 2141.2 nm, is achieved in the CW regime by using a birefringent filter (BF). A stable passively Q switched Tm,Ho:CYLA laser employing Cr2+:ZnSe as a saturable absorber (SA) is realized for the first time, delivering the shortest pulse width of 560 ns with a transmittance of 1%. The results indicate that the Tm,Ho:CYLA crystal is an excellent laser medium for generating high-efficiency laser at ∼2 µm and has a potential in ultrafast laser generation.