As a point defect in a crystal lattice, a neutral Yb atom isolated in a solid noble gas matrix qualitatively resembles the free atom in terms of their optical excitations and spontaneous decays. Our studies are undertaken to determine the feasibility of optically polarizing the nuclear spins of trapped atoms, which has potential applications in testing fundamental symmetries, measuring the cross-sections of rare nuclear astrophysical reactions, and perhaps quantum memory & quantum computing. The high resolution optical spectra indicate the atomic structure of Yb and the crystal field perturbation from the matrix. The hyperfine quenching rate of the clock transition in 171Yb trapped in solid Ne is measured and the corresponding rate in vacuum is extracted for the first time. A matrix-enhanced spontaneous emission rate of an intercombination transition is observed and is attributed to the change in the vacuum of the quantum electrodynamics. I will also describe our progress towards optical pumping of 171Yb nuclei.