Type of powder feedstock greatly affects properties of zirconia coatings since they interact differently in a plasma flame and hence influence microstructure development. In this study, ZrO2-8wt% Y2O3 thermal barrier coatings (TBCs) have been produced by atmospheric plasma spraying fused and crushed (FC) and hollow sphere (HOSP) feedstock powders. The sprayed coatings contained segmentation cracks going through the coating thickness. High substrate temperature during spraying gave rise to increased segmentation crack density (Ds). The FC powder has the capability of providing coatings with high segmentation crack density compared with the HOSP one. At lower temperature, the HOSP coating was more porous than the FC coating sprayed at similar temperature and hence exhibited a much reduced thermal diffusivity. At high plasma temperature, the HOSP particles attained higher particle surface temperatures and velocities than the FC ones. The particles temperatures and velocities for the HOSP particles were influenced more significantly by spray condition than those for FC particles.