Results of comparative structural characterization of bare and Zn-covered ZnTe nanowires (NWs) before and after thermal oxidation at 300 °C are presented. Scanning electron microscopy, energy-dispersive X-ray spectroscopy, high-resolution transmission electron microscopy, and Raman scattering not only unambiguously confirm the conversion of the outer layer of the NWs into ZnO, but also demonstrate the influence of the oxidation process on the structure of the inner part of the NWs. Our study shows that the morphology of the resulting ZnO can be improved by the deposition of thin Zn shells on the bare ZnTe NWs prior to the oxidation. The oxidation of bare ZnTe NWs results in the formation of separated ZnO nanocrystals which decorate crystalline Te cores of the NWs. In the case of Zn-covered NWs, uniform ZnO shells are formed, however they are of a fine-crystalline structure or partially amorphous. Our study provides an important insight into the details of the oxidation processes of ZnTe nanostructures, which could be of importance for the preparation and performance of ZnTe based nano-devices operating under normal atmospheric conditions and at elevated temperatures.