A broad range of Ta₂O₅-Y₂O₃ doped ZrO₂ (TYSZ) compounds were synthesized. The effects of dopant content on phase structure, phase stability, fracture toughness, coefficient of thermal expansion (CTE), and thermal conductivity were investigated. The TYSZ response mechanism under stress conditions was also explored. Result suggests that the lattice distortion caused by Ta₂O₅ and Y₂O₃ doping favors t phase stabilization. However, as the doping content increases, the high-temperature stability and fracture toughness decrease due to the suppressed stress-induced phase transformation and precipitation. The variation in CTE and thermal conductivity is due to the chaotic and expansive crystal structure. The 16TYSZ might be the potential candidate for advanced thermal barrier coating materials for its good phase stability, stress-sensitive phase transferability, and thermophysical properties.