In this work, we used the chemical vapor transport (CVT) method to grow PbI2 crystals using iodine as a self-transporting agent. The crystals’ structure, composition, and uniformity were confirmed by X-ray diffraction (XRD) and electron probe microanalysis (EPMA) measurements. We investigated the band gap energy using absorption spectroscopy measurements. Furthermore, we explored the temperature dependence of the band gap energy, which shifts from 2.346 eV at 300 K to 2.487 eV at 20 K, and extracted the temperature coefficients. A prototype photodetector with a lateral metal–semiconductor–metal (MSM) configuration was fabricated to evaluate its photoelectric properties using a photoconductivity spectrum (PC) and persistent photoconductivity (PPC) experiments. The resonance-like PC peak indicates the excitonic transition in absorption. The photoresponse ILight/IDark-1 is up to 200%.