A lead-free insulating ceramic coating zinc oxide arrester valve and a method for manufacturing thereof are disclosed. In an embodiment a method includes preparing an initial powder from starting materials with the following mass percentages: ZnO: 86-95%; Bi2O3: 1.0-3.0%; Co3O4: 0.5-1.5%; Mn3O4: 0.2-1.0%; Sb2O3: 3.0-9.0 %; NiO: 0.2-1.0%; and SiO2: 1.0-3.0%, preparing a ceramic coating powder by mixing the initial powder, deionized water and first grinding balls, milling the mixture, and drying and pulverizing the mixture, preparing a ceramic coating slurry by mixing a PVA solution, the ceramic coating powder and second grinding balls and milling the mixture, applying the ceramic coating slurry to a green body, heating and debinding the ceramic coating slurry with the green body thereby forming a resistor element and sintering the resistor element thereby obtaining a zinc oxide surge arrester valve block having a lead-free insulating ceramic coating.