Improving the fracture toughness of agricultural soil-engaging components can mitigate the detrimental effects of hard particles in the soil while maintaining the wear resistance of the components, thereby improving the service performance. The wear resistance of the parts can be improved by surface treatment, but the surface toughness after treatment still needs to be further improved. In this study, WC10Co4Cr@YSZ (Yttria Stabilized Zirconia) core-shell structured composite powder was synthesized by modifying commercial WC10Co4Cr powder using the sol-gel method, and WC10Co4Cr coatings were prepared using the powders before and after modification. The microstructure of the powder and coatings were characterized. The mechanical properties and wear resistance of the coatings were evaluated through microhardness, nanoindentation, and friction testing. The hardness of the YSZ-modified composite coating was comparable to that of the unmodified coating, yet it exhibited lower porosity and twice the fracture toughness. Wear test results indicated that the coating's wear loss was greatly reduced compared with the substrate. In addition, the wear rate of the YSZ-modified coating was 71.11 % lower than the unmodified coating, demonstrating its exceptional wear resistance. The findings show that incorporation of YSZ into the coating system further enhanced wear resistance. The strengthening mechanisms resulting from the YSZ inclusion include the pinning effect, which controls the size and distribution of the WC grains, the shell structure that prevents overheating, and the improved fracture toughness of the coating. This work provides a new way to extend the service time of agricultural soil-engaging components.