An orthorhombic symmetry type BaGd2ZnO5:Dy3+ nanocrystals with luminance of cool white-color light have been fabricated via urea assisted combustion methodology. Morphological analysis revealed the agglomerated particles with non-uniform shape having crystal-size of 30-40 nm. Optimized amount of dopant (Dy3+) was examined to be x = 3 mol%, after the occurrence of quenching phenomenon. The logical pathways for quenching mechanism has been determined as non-radiative (NR) relaxations of energy via exchange-type interrelations as validated by Inokuti-Hirayama (I-H) and Dexter's theory. Fabricated nano-powders represents two band located at 492 nm (bluish) and at 581 nm (yellowish). Band gap, decay life time and quantum efficiency of optimal powder were found as 4.71 eV, 0.7049 ms and 93.9% respectively. White-light emanation is reflected in terms of CIE color-parameters like color-coordinates of white regions (0.2869, 0.3876), color purity of 30 x 10(-2) and CCT values as 7206.2 K, which have been in congruence with standard coordinates of commercial LEDs and NTSE and thus, authenticate their optimistic applicability for advanced illuminating devices.