The microstructure and electrical characteristics of ZnO-Bi2O3 ceramics containing 5mol% Bi2O3 have been studied in relation to sintering temperature and mode. The distribution and thickness of Bi2O3 intergranular layer was varied with sintering temperature and mode. Intergranular layer was more homogeneous with increasing sintering temperature, when sintering by direct heating and rapid cooling mode showed the best distribution of intergranular layer. These microstructural changes affected electrical characteristics directly, at 140$0^{circ}C$ and C mode obtained high value of electrical resistivity and nonlinear exponent. Varistor voltage decreased with increasing sintering temperature, increased with decreasing holding time at high temperature. Barrier voltage obtained by calculation was about 1.5V.