A thermal barrier coating (TBC) with depth-varying material properties is formed on a turbine component. Exemplary depth-varying material properties include physical ductility, strength and thermal resistivity that vary from the TBC layer inner to outer surface. Exemplary ways to modify physical properties include application of plural separate overlying layers of different material composition or by varying the applied material composition during the application of the TBC layer. Various embodiment described herein also apply a calcium-magnesium-aluminum-silicon (CMAS)-retardant material over the TBC layer to retard reaction with or adhesion of CMAS containing combustion particulates to the TBC layer. In other embodiments the CMAS retardant material is also applied within engineered groove features (EGFs) that are formed in the TBC surface.