Plasma sprayed ceramic materials contain an assortment of micro-structural defects, including pores, cracks, and interfaces arising from the droplet based assemblage of the spray deposition technique. The defective architecture of the deposits introduces a novel "anelastic" response in the coatings comprising of their non-linear and hysteretic stress-strain relationship under mechanical loading. It has been established that this anelasticity can be attributed to the relative movement of the embedded defects under varying stresses. While the non-linear response of the coatings arises from the opening/closure of defects, hysteresis is produced by the frictional sliding among defect surfaces. Recent studies have indicated that anelastic behavior of coatings can be a unique descriptor of their mechanical behavior and related to the defect configuration. In this dissertation, a multi-variable study employing systematic processing strategies was conducted to augment the understanding on various aspects of the reported anelastic behavior. A bi-layer curvature measurement technique was adapted to measure the anelastic properties of plasma sprayed ceramic. The quantification of anelastic parameters was done using a non-linear model proposed by Nakamura et.al. An error analysis was conducted on the technique to know the available margins for both experimental as well as computational errors. The error analysis was extended to evaluate its sensitivity towards different coating microstructure. For this purpose, three coatings with significantly different microstructures were fabricated via tuning of process parameters. Later the three coatings were also subjected to different strain ranges systematically, in order to understand the origin and evolution of anelasticity on different microstructures. The last segment of this thesis attempts to capture the intricacies on the processing front and tries to evaluate and establish a correlation between them and the anelastic parameters.