Aqueous yttria-stabilized zirconia slurry was cast on a substrate to form wet coatings. Both weight loss and thickness reduction were measured, during the drying process. Lateral drying was observed by in situ monitoring of the coating surface. The drying kinetics were classified as an initial constant rate period (CRP), followed by a falling rate period (FRP). Thickness reduction occurred in the CRP stage, and was uneven across the coating because of lateral flow. As tensile stresses developed within the coating because of the constrained volume shrinkage, crack formation and propagation occurred in the FRP stage and affected the drying rate.