The dielectric constant of CCTO materials can be as high as 104, which makes it suitable for use in electronic devices but the high dielectric loss limits its application. In this paper, a series of Sr and Zr co-doped CCTO ceramics having the formula Ca0.8Sr0.2Cu3Ti4−xZrxO12 (x = 0.1, 0.2, 0.3, 0.4) were obtained via a solid-state reaction technique. We force the effect of the Zr content on the phase composition, microstructure, cationic valence states, impedance, and dielectric properties of the as-prepared ceramics to reduce dielectric loss. The results demonstrate that Sr and Zr co-doping increases dielectric constant and reduces dielectric loss simultaneously, and the maximum dielectric constant (1.87 × 105, 1 Hz) and minimum dielectric loss (0.43, 102 Hz) are obtained when x = 0.3. Mixed Cu+/Cu2+ and Ti3+/Ti4+ valence states are observed to coexist in the co-doped material lattices, which promote dipole polarization, and thereby increase the dielectric constant of the ceramics. The dielectric properties of the materials are analyzed according to the internal barrier layer capacitance model, which elucidates the contributions of the grains and grain boundaries to dielectric performance. The maximum grain boundary resistance (3.7 × 105 Ω) is obtained for x = 0.3, which contributes toward the minimum dielectric loss (0.43) obtained for this ceramic at a frequency less than 1 kHz. The average grain sizes of the samples decrease with increasing Zr content, which is the primary factor increasing the grain boundary resistance of the co-doped ceramics.