All-solid-state batteries based on the active cathode material LiCoO2 (LCO), a garnet-type Li7La3Zr2O12 (LLZO) electrolyte and a Li-metal anode are attracting a lot of attention as a robust and safe alternative to conventional lithium-ion batteries. The challenges in the practical realization of such cells are related to high-temperature sintering, which compacts the ceramic powder but also leads to undesirable material interactions such as cation interdiffusion and secondary phase formation. Even if high initial capacities can be achieved, the all-inorganic cells suffer from a strong capacity drop due to various degradation phenomena during processing and operation, which are not yet fully understood. In this study, the thermodynamic and kinetic aspects of co-sintering as well as the structural evolution of materials and interfaces during processing and operation of co-sintered LCO-LLZO cathodes are investigated in detail. A thermodynamic model for the interdiffusion of cations is derived and the effects of the diffusion of Al- and Co-ions, which occurs during the processing and cycling of the cells, are investigated. In LLZO, the diffusion of 0.13 Co per formula unit (pfu) has a negligible effect on ionic and electronic conductivity and electrochemical stability. In contrast, the substitution of 0.01 pfu Al and the induced disorder in the layer structure of LCO increases the polarization during cycling. All-inorganic cells fabricated with optimized sintering parameters to minimize interdiffusion between LCO and LLZO show good initial performance but similar degradation during cycling, as the used processing parameters result in a more porous microstructure leading to the development of cracks along the LLZO/LCO interface. The results obtained highlight the inherent instabilities of all-ceramic cathodes with unprotected LCO/LLZO interfaces, which require precise tuning of materials and processing parameters to achieve both high mechanical stability and low interdiffusion.@en