Controlling the moisture content of the electrode-covering is crucial in the production of defect-free, high-quality welds during shielded metal arc welding of steels. The welding industry has long faced the challenge of the high susceptibility of basic electrodes (e.g., E7018) to moisture absorption. In this paper, we demonstrate that applying a nanosilica coating to the surface of the E7018 electrode-covering using a dip-coating technique can effectively reduce the moisture absorption capability of the electrode-covering. The moisture measurement results before and after exposure to a moist environment of 80% humidity and a temperature of 27 °C for 9 h indicate that the moisture absorption values of conventional and nano-treated E7018 electrodes during exposure are 0.67 wt% and 0.03 wt%, respectively. While reducing the size of the pores on the surface of the electrode-covering can to some extent enhance the resistance to moisture absorption, it has been identified that turning the wetting behavior of the electrode-covering surface from hydrophilic to hydrophobic by the nanosilica coating is the most effective mechanism that contributes to the enhanced moisture absorption resistance of the nanosilica-treated electrode-covering. The results indicate that this approach does not have any deleterious effects on the chemical analysis and tensile properties of the weld metal. This simple modification to the electrode-covering can be generally applied to a wide range of electrode-covering types to produce hydrophobic, moisture-resistant electrodes.