A thermal barrier coating, or TBC (26), and method for forming the TBC
(26). The TBC (26) is formed of a thermal-insulating material that
contains yttria-stabilized zirconia (YSZ) alloyed with at least a third
oxide. The TBC (26) is formed to also contain elemental carbon, and may
potentially contain carbides and/or a carbon-containing gas that forms
from the thermal decomposition of carbon. The TBC (26) is characterized by
lower density and thermal conductivity, high temperature stability and
improved mechanical properties. To exhibit the desired effect, the third
oxide is more particularly one that increases the lattice strain energy of
the TBC microstructure as a result of having an ion size that is
sufficiently different than a zirconium ion.