Sol-Gel-based reaction mixture sols have been long used to fabricate dense and uniform bioactive coatings with superior mechanical stability over metallic implants. On account of precise control over synthesis, fabrication, formed and low temperature of processing, this technology is one of the most feasible routes to produce bio-ceramic coatings. The study aims to develop a physical barrier over metal implants in form of bioinert Zirconia coatings, phase-stabilized using Dysprosium. The metallic substrates were cut into 10 mm × 10 mm samples and diamond polished after being polished with a 1000 grade emery sheet. Novel spin-coated zirconia films were fabricated over 316L Stainless steel substrates and were sintered at 600°C to obtain firm and uniform crack-free coatings. The thickness of the coatings was determined by ELCA-D meter thermal analysis was performed using TGA-DTA. Phase determination was performed using X-Ray diffraction followed by morphological investigations using Scanning electron microscopy. The corrosion resistance was evaluated with Polarization studies and electrokinetic data was derived using Tafel extrapolation. Biocompatibility evaluation was performed against MG-63 cell lines and RBCs along with bone-forming ability in vitro in SBF. Stable crack-free 3 Layer coatings fabricated at 2000 rpm for 3 s with a thickness of around 1 μm were found to be optimal for corrosion resistance behavior of steel implants at a low ICorr value of 0.501 µA/cm2 and adhesion strength of 40.93 MPa when untreated falling down to 39.92 MPa when immersed in SBF. The study concludes that medium rpm coatings sustain enough sol to produce crack-free coatings that form a strong physical barrier between body fluid and implant surface thereby reducing the attack of corrosive ions and protecting the implant surface without participating in any form of bioactivity but supporting native bone regeneration capabilities.