The initiation of laser damage within optical coatings can be better understood by thermal-mechanical modeling of coating defects. The result of this modeling shows that a high-temperature rise and thermal stress can be seen just inside the nodular defect compared to surrounding coating layers. The temperature rise and thermal stress tend to increase with seed diameter. Shallower seed tend to cause higher temperature rise and greater thermal stress. There is a critical seed depth at which thermal stress is largest. The composition of the seed resulting from different coating-material emission during evaporation can affect the temperature rise and thermal stress distribution.