Optically addressable spins are actively investigated in quantum communication, processing and sensing. Optical and spin coherence lifetimes, which determine quantum operation fidelity and storage time, are often limited by spin-spin interactions, which can be decreased by polarizing spins in their lower energy state using large magnetic fields and/or mK range temperatures. Here, we show that optical pumping of a small fraction of ions with a fixed frequency laser, coupled with spin-spin interactions and spin diffusion, leads to substantial spin polarization in a paramagnetic rare earth doped crystal, $^{171}$Yb$^{3+}$:YSO. Indeed, up to more than 90 % spin polarizations have been achieved at 2 K and zero magnetic field. Using this spin polarization mechanism, we furthermore demonstrate an increase in optical coherence lifetime from 0.3 ms to 0.8 ms, due to a strong decrease in spin-spin interactions. This effect opens the way to new schemes for obtaining long optical and spin coherence lifetimes in various solid-state systems such as ensembles of rare earth ions or color centers in diamond, which is of interest for a broad range of quantum technologies.