We report on an efficient diode-end-pumped polycrystalline Yb:Y2O3 ceramic laser. Continuous-wave output power of 4.2 W at 1078 nm was obtained under pump power of 19.5 W. The corresponding slope efficiency was 29%. The beam quality factor (M2) at full pump power was measured to be 1.63. The threshold wavelengths of the laser at various output couplings were also investigated. It was found that the threshold wavelengths shifted approximately 5 nm when the reflectivity of the output coupler changed from 90% to 99.9%, as caused by the strong reabsorption effect in the ceramic sample.