For additive manufacturing, research has shown that the chemistry and microstructural properties of the feedstock powder can significantly affect the properties of the consolidated material. Thermal treatment and recycling parameters for powders used in both solid and liquid state processes can further affect the microstructure and properties of the consolidated parts. Understanding the powder microstructure and effects of powder pre-treatment can aid in optimizing the properties of the final consolidated part. This research proposes a method for the characterization and optimization of powder pre-processing thermal parameters using aluminum alloy powder as examples. Light microscopy, electron microscopy, and hardness were used to evaluate each condition.