Hot-pressed yttrium disilicate ceramics have been characterized using analytical transmission electron microscopy (TEM). The microstructure consists of large grains of the gamma phase of stoichiometric gamma-Y2Si2O7 containing rounded glassy Y-doped SiO2 inclusions; excess glassy SiO2-rich material is also found at the grain boundaries. Two main reasons are found for the inhomogeneity: a slight SiO2 excess is inferred from the composition measurements, and the LiF flux used in hot pressing would also promote glass formation. Improved high-temperature mechanical properties would only be possible if residual glass formation was minimized, strategies for doing so are discussed, and the importance of analytical TEM for studying such submicron scale inhomogeneity is underlined.