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Once commander, Zhao is a strong leader and is loyal to Ozai. Many believe that he wants to be Fire Lord after Ozai dies. He has a strong hatred for Zuko, but he needs him for information on capturing the Avatar. Zuko has come across Zhao a few times, and they weren’t good times. They had a fire duel, where Zuko was victorious. He has also commanded to tell the whereabouts of the Avatar, but Zuko refused.
Admiral Zhao once captured the Avatar, using his very skilled YuuYan Archers. He made a bold speech on winning the war, and had a heavily guarded fortress, possibly in the Earth Kingdom, that had the Avatar inside. The Avatar, unfortunately to him, escaped.
Zhao has the resources of thousands of ships and soldiers, not to mention his archers. He is now one of the most powerful men in the world, not to mention the fire nation. With all those resources and power, you’d think capturing a 12-year-old flying across the world on a flying bison would be pretty easy, right? Well, he’s done it once. And, if there’s a next time, Aang might not escape so easily.
Episode 3 - Zuko called Zhao "Captain" initially, so he was promoted to captain over two years ago. He has since been promoted to "Commander" he noted. This means in the past two years, Mr. Zhao has received at least one promotion.
Episode 13 - Zhao received word from the Fire Lord he has been promoted to "Admiral". This is a very high ranking position in the Fire Nation Military, above Colonel, Lieutenant, and Commander. 
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