This research aims to investigate the modifications of the structural, dielectric, and sensing properties of CaFeO_3−δ ceramics produced by solid-state reaction induced by varying sintering temperatures in the range of 1000–1200 °C. A single crystallographic orthorhombic (Pcmn) structure was revealed by X-ray diffraction with Rietveld analysis, both for the powders and sintered ceramics, irrespective of the sintering temperature. The increase in the sintering temperature induces better densification and a larger grain size. Dielectric measurements reveal a pronounced enhancement of the relative permittivity, reaching 2 × 10⁵ at 1 kHz and 330 °C for the sample sintered at 1200 °C/4 h. This composition also displays the highest electrical conductivity, 0.4 S/m at 1 MHz. Cole–Cole analysis indicates a clear deviation from ideal Debye behavior, while the relaxational features of the dielectric permittivity suggest a strong correlation between the dielectric response and Fe-related conduction mechanisms. Gas sensing tests show that the ferrite ceramics exhibit consistent ethanol response trends. The ceramic sintered at 1200 °C/4 h achieved the highest sensitivity, of 56.28%, which can be attributed to its higher density, larger ceramic grains, and reduced low-frequency conductivity. The CaFeO_3−δ ceramic sintered at 1200 °C/4 h shows a combination of high permittivity, enhanced conductivity, and strong ethanol sensitivity, making it a promising material for dielectric components, capacitive devices, and gas sensing applications.