This paper presents an evaluation of the molten pool laser damage done to an Al2O3 ceramic coating. Mechanism analysis of the laser damage allowed for a 2D finite element model of laser ablation of the Al2O3 ceramic coating to be built. It consisted of heat transfer, laminar flow, and a solid mechanics module with the level set method. Results showed that the laser damage mechanisms through laser ablation were melting, gasification, spattering, and micro-cracking. The ablation depth and diameter increased with the increasing laser ablation time under continuous irradiation. The simulation profile was consistent with the experimental one. Additionally, the stress produced by the laser ablation was 3500–9000 MPa, which exceeded the tensile stress (350–500 MPa), and fracturing and micro-cracks occurred. Laser damage analysis was performed via COMSOL Multiphysics to predict laser damage morphology, and validate the 3D surface profiler and scanning electron microscope results.