The invention discloses a method for recycling rare earth from a waste nickel-hydride battery and conducting transformation. The method comprises seven steps including the first step of crushing treatment, the second step of acid leaching treatment, the third step of primary solid-liquid separation, the fourth step of primary sedimentation treatment, the fifth step of secondary solid-liquid separation, the sixth step of sulfuric acid rare earth double salt transformation treatment and the seventh step of rare earth sedimentation extraction. Compared with rare earth sulfate, carbonic acid rare earth sediment is easy to dissolve, the carbonic acid rare earth sediment can be better conducted to further deep processing and can be well separated from nickel and cobalt in the waste nickel-hydride battery, recycling of the rare earth is facilitated, and other valuable metal can be recycled. The reaction is conducted under the normal pressure, the reaction temperature is low, and therefore energy consumption is low. The waste nickel-hydride battery is crushed under the temperature condition of 15 DEG C, volatilization of harmful substances of the waste nickel-hydride battery can be reduced, and the waste nickel-hydride battery can be easier to crush; and to prevent temperature rise of the waste nickel-hydride battery due to collisions in the crushing process, it is most proper to crush the waste nickel-hydride battery in winter.