Zr-4 alloy tubes, as the primary cladding material in nuclear reactor cores, face the critical challenge of oxidative attack in 1200 °C steam environments. To address this issue, high-temperature oxidation-resistant coatings fabricated via extreme high-speed laser cladding (EHLA) present a promising mitigation strategy. In this study, Y₂O₃-modified (0.0–5.0 wt.%) Cr/FeCrAl composite coatings were designed and fabricated on Zr-4 substrates using the EHLA process, followed by systematic investigation of Y doping effects on coating microstructures and steam oxidation resistance (1200 °C, H₂O atmosphere). Experimental results demonstrate that Y₂O₃ doping remarkably enhanced the oxidation resistance, with optimal performance achieved at 2.0 wt.% Y₂O₃ (31% oxidation mass gain compared to the substrate after 120-min exposure). Microstructural analysis reveals that the dense grain boundary network facilitates rapid surface diffusion of Al, promoting continuous Al₂O₃ protective film formation. Additionally, Y segregation at grain boundaries suppressed outward diffusion of Cr³⁺ cations, effectively inhibiting void formation at the oxide-coating interface and improving interfacial stability. The developed rare-earth-oxide-doped composite coating via extreme high-speed laser cladding process shows promising applications in surface-strengthening engineering for nuclear reactor Zr-4 alloy cladding tubes, providing both theoretical insights and technical references for the design of high-temperature oxidation-resistant coatings in nuclear industry.