The microstructure and electrical properties of varistor ceramics, which are composed of Zn-Pr­Co-Cr-Dy-oxide system, were investigated at various dysprosia $(Dy_2O_3)$ addition contents. The $DY_2O_3$ microstructurally played the role of inhibition for the densification and grain growth. As the $DY_2O_3$ content increased, the density decreased in the range of $5.51-4.90 g/cm^3$, reaching maximum at $0.5 mol\%$ and the average ZnO grain size decreased in the range of $17.7-6.0{mu}m$. The incorporation of $DY_2O_3$ significantly improved the nonlinear properties of varistors, above 30 in nonlinear exponent, compared with that without $DY_2O_3$. The varistors with the best performance of nonlinear properties was obtained $DY_2O_3$ content of $1.0 mol\%$, 49 in nonlinear exponent and $0.5{mu}A$ in leakage current.