Herein, we present new design principles for gain enhancement and cross-polarization suppression in dual-polarized cavity-backed antennas and demonstrate the capability in an octagonal cavity-backed open prism antenna (OCROP). In our approach, the gain is enhanced through an optimal flaring procedure and a novel metallic iris is used to control the electromagnetic fields and thereby reduce the cross-polarization. Previously, we investigated a dual-polarized OCROP antenna configuration and were able to simultaneously achieve 50% impedance bandwidth, 40% cross-polarization bandwidth (≤25 dB), and 10.2 dBi peak gain. In this study, we investigated gain enhancement by flaring an upper section of the ground cavity sidewalls, while maintaining a constant cavity height. Two cases were investigated: (1) the flare angle was modified, while the ratio of the non-flared to flared sidewall heights was kept constant, and (2) the ratio of the non-flared to flared sidewall heights was varied. In case 1, we established that, while increasing the flare angle results in a gain increase, there is a limit, as cross-polarization at the upper operating frequencies increases. In case 2, we were able to reduce the aperture phase error and achieve a higher peak gain of 12.8 dBi. To address the increased cross-polarization at the high frequency end when a large flare was used, we added a metallic iris at the junction of non-flared and flared sidewalls. We showed that increasing the iris width generally decreases the cross-polarization at high frequencies, without compromising the gain and impedance bandwidth. At an optimal width, it provides a nearly constant, low cross-polarization (below −25.8 dB) and a peak gain of 13.3 dBi, across the entire 50.7% impedance bandwidth of the antenna. We fabricated and successfully tested a prototype to verify the design and simulation approach. These results prove that incorporating an aperture flare with a metallic iris can significantly improve the gain and cross-polarization performance of cavity-backed antennas.