Eboracum House, which is home to 14 residents, was placed in special measures earlier this year following an inspection on January 25.
However at its most recent inspection, which was carried out on June 16, positive changes were noted - though there remains room for improvement, according to the CQC.
The inspection was planned because of the previous rating.
The report states: “This service has been in special measures since January 25, 2021.
“During this inspection the provider demonstrated that improvements have been made.
“The service is no longer rated as inadequate overall or in any of the key questions.
“Therefore, this service is no longer in special measures.
“We will continue to monitor information we receive about the service until we return to visit as per our re-inspection programme. “If we receive any concerning information we may inspect sooner.”
Operations manager Chris Lawton told the Chronicle: “We’d like to thank the manager and the staff who have worked tirelessly to get the home where it needs to be.
“I’m a bit disappointed that the report has some orange on it but I’d urge people to read the report as it does read positively.
“We’ll continue to work collaboratively with the council.”