The relationship between atmospheric pressure plasma spray parameters and in-flight particle characteristics was determined. The morphologies of individual splats and the coating microstructure were studied for different stand-off distances and arc currents. Coating cross-sectional analysis showed that the total porosity of the coating increased with decreasing arc current, and increasing stand-off distance. Two different materials were used: the regular (r-YSZ) feed stock and the nano size (n-YSZ) agglomerated powder. The results illustrate that the r-YSZ coating has higher total porosity at higher arc currents than n-YSZ coating. The splat flattening degree and circularity was examined at different substrate temperatures for both powders. The results indicate that the flattening degree increased at high temperatures for the two materials, but the values for n-YSZ were higher than those for the r-YSZ. This study showed the operating regimes in which the use of n-YSZ yields improved coating properties.