We study the optical properties of thin flakes of InSe encapsulated in hexagonal boron nitride. More specifically, we investigate the photoluminescence (PL) emission and its dependence on sample thickness and temperature. Through the analysis of the PL line shape, we discuss the relative weights of the exciton and electron-hole contributions. Thereafter we investigate the PL dynamics. Two contributions are distinguishable at low temperature: direct band-gap electron-hole and defect-assisted recombination. The two recombination processes have lifetimes of τ1∼8ns and τ2∼100ns, respectively. The relative weights of the direct band-gap and defect-assisted contributions show a strong layer dependence due to the direct-to-indirect band-gap crossover. Electron-hole PL lifetime is limited by population transfer to lower-energy states and no dependence on the number of layers was observed. The lifetime of the defect-assisted recombination gets longer for thinner samples. Finally, we show that the PL lifetime decreases at high temperatures as a consequence of more efficient nonradiative recombinations.