This is the second paper of a two part series based on an interdisciplinary research investigation between the University of Limoges, France, and the State University of New York, Stony Brook, USA, aimed at fundamental understanding of the plasma-particle interaction, deposit formation dynamics and microstructure development. In this paper, the microstructure development during plasma spraying of zirconia is investigated from the point of view of deposition parameters and splat formation (part I). Splats and deposits have been produced at Limoges and Stony Brook under controlled conditions of particle parameters and substrate temperatures. The zirconia splat microstructures thus obtained are examined for their shape factors, grain size, crystallographic texture and defects. Further the deposits were analyzed for phases, porosity and mechanical properties in an effort to develop a process-microstructure property relationship. The results suggest a strong role played by the deposition temperature on the microstructure and properties of the deposit.