The invention discloses water-in-water type sound insulation multicolor paint. The water-in-water type sound insulation multicolor paint is formed through three phases including colloidal solution, pelletized base paint and emulsion finished paint. The colloidal solution comprises sodium pyrophosphate, lithium magnesium silicate and water; the pelletized base paint comprises polyethylene glycol, an anti-foaming agent, waterborne elastic polyurethane emulsion, colloidal solution, titanium dioxide, environment-friendly inorganic pigments, a thickening agent, a thermal insulation agent, a film coalescing aid and water; the emulsion finished paint comprises waterborne elastic polyurethane emulsion, propylene glycol, a sound absorption functional material, pelletized paint, carboxymethyl cellulose, a waterproof agent, an anti-corrosion agent and water. The invention further provides a preparation method of the multicolor paint. Once spray coating of the multicolor paint can be realized without adoption of organic solvents and various colors. In addition, the water-in-water type sound insulation multicolor paint has advantages of sound insulation, heat insulation, water resistance, pollution prevention, easiness for washing and scrubbing resistance and is available for arbitrary color matching to realize perfect patterning.