Layered lithium-rich oxide (LLO) with high energy density is considered as the cathode material for the next generation of lithium-ion batteries. However, low initial Coulombic efficiency, poor cycling performance, and rate performance have hindered the commercialization of LLO. Herein, we propose an effective one-pot co-precipitation method to improve the rate capability and cycling stability of LLO materials. The addition of Cd 2+ ions in LLO can affect the formation and growth of primary grains, which leads to structural reconstruction phenomena. Finally, the Cd element exists in the LLO material in the form of ion doping and CdO coating. The Cd-modified LLO material shows porous microspheric morphology, large layer spacing, and well crystallization. The role of Cd doping is to improve the electronic conductivity of LLO and increase the electrochemical potential. CdO nanoparticles covered on the surface and dispersed in the interior of the LLO material particles prevent the native material from being corroded by the electrolyte and contribute to the structural stability of the active material during cycling. Under the synergistic effect of these two modification methods, the surface and internal kinetics of the LLO materials are enhanced, their rate performance and cycling stability are improved, and the electrodes exhibit excellent structural stability after cycling. Density functional theory analysis results prove that Cd doping can suppress the structural change during the charging process and possess lower formation energy.