We present a surface-passivation method that reduces surface-related losses by almost 2 orders of magnitude in a highly miniaturized GaAs open microcavity. The microcavity consists of a curved dielectric distributed Bragg reflector with radius of approximately 10μm paired with a GaAs-based heterostructure. The heterostructure consists of a semiconductor distributed Bragg reflector followed by an n-i-p diode with a layer of quantum dots in the intrinsic region. Free-carrier absorption in the highly-n-doped and highly-p-doped layers is minimized by our positioning them close to a node of the vacuum electromagnetic field. The surface, however, resides at an antinode of the vacuum field and results in significant loss. These losses are much reduced by surface passivation. The strong dependence on wavelength implies that the main effect of the surface passivation is to eliminate the surface electric field, thereby quenching below-band-gap absorption via a Franz-Keldysh-like effect. An additional benefit is that the surface passivation reduces scattering at the GaAs surface. These results are important in other nanophotonic devices that rely on a GaAs-vacuum interface to confine the electromagnetic field.