Lithium terbium fluoride (LTF) crystal is a good kind of magneto-optical material with high Verdet constant and low absorption coefficient, which is suitable to be used in magnetic-optical devices for high-power and large energy laser systems. In this paper, large size and high optical quality LTF crystal with a diameter of 2 inch was prepared by resistance heating Czochralski method, under the conditions of a protective atmosphere mixed with Ar and CF4. During this process, high-purity TbF3 and LiF were adopted as the raw materials. The optical properties of the LTF crystal were analyzed in detail. This crystal boule exhibits a complete appearance, good optical uniformity, and low residual stress, with no visible scattering particles under He-Ne laser irradiation. The LTF crystal elements with a diameter of 10 mm were processed from this boule. The parameters of the crystal elements such as the single-pass loss coefficient, extinction ratio, wavefront distortion, and weak absorption coefficient were tested. The results show that the grown LTF crystal have good optical quality. The magneto-optical performance of the LTF crystal was also researched, and its Verdet constant is about 98% of that of the commercial TGG crystals.