Herein, we demonstrated the fabrication and operation of vertical diamond Schottky barrier diode (SBD) as a high-performance temperature sensor. The current transport mechanism and temperature sensor properties of Zr/p-diamond SBD were comprehensively investigated with operating temperatures up to 448 K. At room temperature, Zr/p-diamond SBD exhibits outstanding performances with a high rectification ratio of 2.28 × 1010, a low specific on-resistance of 0.5 mΩ•cm2, a large Schottky barrier height (SBH) of 1.43 eV, a low ideality factor of 1.77, and an extremely low saturation current of 4.42 × 10−22 A. The enhanced-performance with a higher forward current and a lower reverse leakage current is observed to be across a wide temperature range from 323 to 448 K. Additionally, a significant improvement of rectifying current curve with a highest rectification ratio over 1012 is obtained at 423 K. The SBH increases whereas the ideality factor decreases with temperature increasing, indicating barrier inhomogeneities at Zr/p-diamond interface. The temperature-dependent electrical transport characteristics on spatially inhomogeneous Schottky contacts can be successfully described by potential fluctuations model. The extracted original value of Richardson constant (A*) is 0.0153 A/cm2•K2, which is much lesser than theoretical value of 96 A/cm2•K2. The discrepancy of A* value from theoretical value has been well explained by thermionic emission model with Gaussian distribution of barrier inhomogeneity. The values of mean SBH and A* extracted from modified Richardson plot depending on SBH inhomogeneity are 1.76 eV and 105.51 A/cm2•K2, respectively. With a Gaussian distribution take into account, the A* value is close to the theoretical value, and confirmed the existence of SBH inhomogeneity at Zr/p-diamond interface. Furthermore, for Zr/p-diamond SBD operating as a temperature sensor, the voltage drop across the diode decreases linearly with increasing temperature at a specific forward current level, contributing to a highest sensor sensitivity of 6.8 mV/K. The reported results in this work are among the best to date in diamond SBD temperature sensor. Although not optimized for temperature sensor, the high and thermally stable rectifying barriers make Zr/p-diamond SBD a strong candidates for high-performance diamond rectifying diode and temperature sensor.