Li-rich Mn-based layered oxides (LMLOs) are promising cathode material candidate for the next-generation Li-ion batteries (LIBs) of high energy density. However, the fast capacity fading and voltage decay as well as low Coulombic efficiency caused by irreversible oxygen release and phase transition during the electrochemical process hinder their practical application. To solve these problems, in the present study, a multifunctional surface construction involving a coating layer, spinel-layered heterostructure, and rich-in oxygen vacancies is successfully conducted by a facile thermal reduction of the LMLO particles with potassium borohydride (KBH4) as the reducing agent. The multifunctional surface structure plays synergistic effects on suppressing the interface side reaction, reducing the dissolution of transition metal, increasing electron conductivity and lithium diffusion rate. As a result, electrochemical performances of the LMLO cathode are effectively enhanced. With optimization of the addition of KBH4, the electrode delivers a reversible capacity of 280 mAh g−1 at 0.1 C, which maintains after 100 cycles. The capacity retention with respect to the initial capacity is as high as 98% at 1 C after 400 cycles. The present work provides insights into designing a highly effective functional surface structure of LMLO cathode materials for high-performance LIBs.