This paper assessed the microstructure and properties of CeramTec ALOTEC 98 SB alumina ceramic through microscopic characterization and mechanical experiments. The rate-dependent strength and failure response of an alumina ceramic were studied under both uniaxial compression and compression-shear loading. Under quasi-static uniaxial compression at rates of 10−5 to 103 s−1, the strength had an average of 3393 ± 306 MPa, and at dynamic strain rates of 102 to 103 s−1, the strength ranged from 3763 to 4645 MPa. The CeramTec ALOTEC 98 SB alumina ceramic was found to have greater mechanical properties than other commercial alumina ceramics from the literature (i.e., AD-995). To monitor the strain field and the failure process of the alumina ceramic during testing, an ultra-high-speed camera coupled with digital image correlation (DIC) was used to visualize crack initiation and propagation processes, and obtain quantitative stress-strain information. A new data processing method was then proposed in this study to calculate the shear components for the compression-shear tests. Validation of the proposed method was confirmed by the shear strain obtained from the DIC analysis with the ultra-high-speed camera. Using the results obtained by the proposed model and the DIC analysis, new observations and understandings of failure mechanisms are obtained. (1) In compression-shear tests, the shear failure happens before complete failure, and shear behavior plays an important role during the failure process. (2) The equivalent peak stress (strength) of compression-shear test is smaller than the uniaxial compression one. (3) The directional cracks have weak influence on the compressive stiffness, but have a strong influence on the shear response.