Ho3+ doped MgAl2O4 nanophosphors were synthesized in a series (1 to 11 mol%) using ODH fuel driven combustion and low temperature assistance. The band gap energies (Eg) were found to be in range from 4.86 to 5.42 eV. These values were confirmed by employing DFT technique and found to closely match with the experimental values. The PL characteristic emission peaks of Ho3+ ions were found between 406 and 605 nm due to various transitions from 4F7/2→6P3/2 caused by f-f transitions of Ho3+ ions in the host triggered at 406 nm. The 97% colour purity and CIE coordinates that occur in the orange red to yellow zone of the optimized MgAl2O4 phosphors. Fast orange red dye was found to be activated at 493 nm in UV light by studying the photocatalytic capabilities of NPs under UV light. The novel photocatalysts have been demonstrated to work with MgAl2O4:Ho3+ nanophosphors to remove the dye Fast orange red (F-OR). Following a 120-minutes exposure to radiation, the experiment demonstrated 89.02% dye decolorization. The lead pollutant was detected using the cyclic voltammetric (CV) method with a modified MgAl2O4:Ho3+ carbon paste electrode. Finally, we conclude that, based on electrochemical performance, MgAl2O4:Ho3+ nanophosphor is a useful sensing electrode material for an element like lead.