We report the effect of YO passivation by atomic layer deposition (ALD) using various oxidants, such as HO, O plasma, and O, on In-Ga-Zn-O thin-film transistors (IGZO TFTs). A large negative shift in the threshold voltage (V) was observed in the case of the TFT subjected to the HO-ALD YO process; this shift was caused by a donor effect of negatively charged chemisorbed HO molecules. In addition, degradation of the IGZO TFT device performance after the O plasma-ALD YO process (field-effect mobility (μ) = 8.7 cm/(V·s), subthreshold swing (SS) = 0.77 V/dec, and V = 3.7 V) was observed, which was attributed to plasma damage on the IGZO surface adversely affecting the stability of the TFT under light illumination. In contrast, the O-ALD YO process led to enhanced device stability under light illumination (ΔV = -1 V after 3 h of illumination) by passivating the subgap defect states in the IGZO surface region. In addition, TFTs with a thicker IGZO film (55 nm, which was the optimum thickness under the current investigation) showed more stable device performance than TFTs with a thinner IGZO film (30 nm) (ΔV = -0.4 V after 3 h of light illumination) by triggering the recombination of holes diffusing from the IGZO surface to the insulator-channel interface. Therefore, we envisioned that the O-ALD YO passivation layer suggested in this paper can improve the photostability of TFTs under light illumination.