The effects of laser parameters on the microstructure and properties of plasma-sprayed yttrium oxide coating on the graphite matrix were investigated. Tensile strength, porosity, roughness, and scratch meter tests were carried out to evaluate the critical load and mechanical properties of the coating after spraying and laser micro-melting. When the porosity and surface roughness of the coating are minimum, the critical load of the coating is 7.85 N higher than that of the spraying surface. After laser micromelting, the crystal phase of Y2O3 coating surface does not change, the crystallinity is improved, and fine grain strengthening occurs. When the laser power density is 75 W/mm2, the scanning speed is 30 mm/s, and the defocusing distance is 40 mm, the film base bonding performance and wear resistance of the material reach the maximum value. The failure of Y2O3 coating is mainly due to the degradation of mechanical properties such as film base bonding strength, surface porosity, and surface roughness, which leads to the local collapse of the material. The coating after laser micro-melting only presents particle disintegration at the end of the scratch area.