The microstructure of thermally sprayed ceramic coatings is characterized by the existence of various pores and microcracks. The porous microstructure makes coating desirable for thermal insulation, but this unique microstructural feature also gives rise to anelastic response under tension and compression loads. Detail investigations of curvature measurements of ceramic coated substrate indicate the coatings to exhibit anelastic behavior composed of nonlinear and hysteresis characteristics. In this paper, the mechanisms of such behaviors were studied from curvature-temperature measurements and finite element analysis through modeling the microstructure of yttria stabilized zirconia (YSZ) coating. Computational models contain numerous randomly distributed pores and microcracks with various sizes, aspect ratios, locations and orientations. The effects of such attributes of pores and microcracks on coating anelastic behavior were studied by simulations of curvature change during thermal cycles.