The invention provides an air-purifying environmental protection insulation material and a preparation method thereof, which relates to the field of a building material. The insulation material comprises the following raw materials in parts by weight: 35 parts of expanded perlite, 12 parts of magnesium oxide, 25 parts of cement, 18 parts of urea-formaldehyde resin, 0.6 parts of sodium dodecyl benzene sulfonate, 5 parts of a negative ion additive, 14 parts of quartz sand, 26 parts of vermiculite, 21 parts of nano zinc oxide, 18 parts of waste rock wool plate, 14 parts of waste urethane foam plastic, 10 parts of bentonite, 8 parts of diatomite, 16 parts of active carbon, 9 parts of boron fiber, 18 parts of glass fiber, 14 parts of floating beads, 0.6 parts of a binder, 0.8 parts of a heat stabilizer, 0.5 parts of an anti-oxidant, 0.5 parts of a delayed coagulant, 0.7 parts of a water reducer, and 8 parts of water. The preparation method comprises the following steps: 1) material weighing; 2) vermiculite roasting; 3) stirring; and 4) casting molding, demoulding, piling and maintenance. The material has the advantages of high compressive strength, high tensile strength, good heat insulation, energy saving and environmental protection.