In this study, intermediate-mixed powders were prepared by loading zirconia powders initially in a ball-mill jar and loading alumina powders afterward; the initial-mixed powders were produced by loading zirconia and alumina powders together in the ball-mill jar. The effect of such differences in mixing method on the mechanical properties was investigated. In intermediate-mixed powders, the volume fraction of large particles slightly increased and, simultaneously, zirconia particles formed agglomerates that, due to early ball-mill loading of the zirconia powders only, were more dispersed than were the initial-mixed powders. For the intermediate-mixed powders, zirconia agglomerates were destroyed more quickly than were initial-mixed powders, so the number of dispersed zirconia particles rose and the inhibitory effect of densification due to the addition of a second phase was more obvious. In the microstructure of intermediate-mixed powders, zirconia grains were homogeneously dispersed and grain growth by coalescence was found to occur with increasing sintering temperature. For the initial-mixed powders, large zirconia grains formed by localized early-densification on the inside contacts of some zirconia agglomerates were observed in the early stages of sintering. The intermediate-mixed powders had slightly lower hardness values as a whole but higher fracture toughness compared to that of the initial-mixed powders.