Bilayer structures consisting of ZrO2-3mol% Y2O3(TZ-3Y) and zirconia-alumina composites as inner (substrate) and outer (coating) layers, respectively, are fabricated using gel-casting for the inner layer and dip-coating for the outer layer in aqueous system. The relatively tough TZ-3Y is used as the inner layer for damage absorption due to its mechanical properties. The mixture ratio of alumina/zirconia slips for dip-coating is 1:9, 2:8, and 3:7 as mole ratio. The processing additives for gel casting, such as dispersant, monomer, dimer, and initiator, are adjusted and optimized by measuring viscosity. From which the solid loading of starting material (TZ-3Y) is determined. The optimum amount of dispersant (D-3019; anionic dispersant agent) for TZ-3Y is 0.7 wt%. The slip pH affects the electric double layer in sols, which causes the different rheological behaviors and solid loadings. The castable solid loading of TZ-3Y is 37 vol%, showing a pseudoplastic rheological behavior. The effect of slip type (different mixture ratio) on sintered body is investigated through hardness (Vickers indentation), microstructure (SEM), and strength (4-point bending tests). Strength of sintered bodies after dip-coating into the slips is higher than that before dip-coating, but hardness is not much different among cases. The effects of thickness in the outer layer on damage resistance and mechanical properties of the bilayer structures are discussed extensively.