The nonlinear electrical properties of TiO2-based varistor doped with 0.25mol% Ta2O5 and different contents of Sc2O3 were investigated. It was found that the TiO2 varistor ceramic doped with 0.10mol% Sc2O3 exhibited an optimal nonlinear coefficient of 7.8, a breakdown electrical field of 16.0V/mm, and relative dielectric constant of 1.27 × 105 (measured at 1 kHz). In order to analyze the effect of Sc2O3 on TiO2 varistors, studies were made on the capacitance versus voltage characteristics. A Schottky-type barrier, which is assumed as the origin of varistor behavior, was inferred from the C-V measurement. The barrier height and donor concentration were obtained as 0.41eV and 1.21 × 1026cm-3, respectively, for sample doped with 0.10mol% Sc2O3. Analogized to the ZnO varistors, the formation mechanism of Schottky-type barrier was discussed in this paper by the theory of defect in crystal lattice.