Thermal barrier coating materials require high phase stability, low thermal conductivity, and a thermal expansion coefficient that matches the bonding layer. Cation doping is a highly efficient method for enhancing the thermophysical and mechanical characteristics of materials used in thermal barrier coatings. The thermophysical and mechanical properties, as well as the phase stability at high temperatures of ceramic materials doped with Yb3+ in gadolinium zirconate, are examined by utilizing first principles calculations and solid-state reaction methods. As the Yb3+ content increases, the grain average particle size of gadolinium zirconate ceramics first decreases and then increases. Given that a smaller grain size results in more grain boundaries, thereby reducing the thermal conductivity of the material, it can be inferred that Yb0.20 ((Gd0.8Yb0.2)2Zr2O7) with the smallest grain size exhibits lower thermal conductivity. As the Yb3+ content increases, both the calculated and experiment results suggest the Young’s modulus of gadolinium zirconate initially declines to its minimum value when the Yb3+ content is 0.5 and subsequently experiences a little increase. Furthermore, as the concentration of Yb3+ increases, the material initially experiences a drop in both hardness and fracture toughness, followed by a subsequent increase. Both the calculation and experimental results indicate that the thermal conductivity of gadolinium zirconate initially decreases and then increases. Among the different compositions, Gd1.5Yb0.5Zr2O7 demonstrates the minimum thermal conductivity, measuring 1.029 W/(m⸱K) according to the Clark model and 1.152 W/(m⸱K) according to the Cahill model. At a temperature of 1273 K, the experimental results demonstrated that (Gd0.8Yb0.2)2Zr2O7 has the lowest thermal conductivity of 1.415 W/(m·K). Furthermore, both the calculated and experimental thermal expansion coefficients of the material decrease first until the Yb3+ concentration is 0.5 and then increase slightly when the Yb3+ content increases. Moreover, gadolinium zirconate ceramics have demonstrated a consistent single-phase fluorite structure, excellent stability at high temperatures, and remarkable structural integrity during repeated heating and cooling cycles. The calculation results exhibit strong congruence with the experimental data. The objective of this work is to improve the thermophysical and mechanical properties of gadolinium zirconate ceramics for their application as materials for thermal barrier coatings.