The invention belongs to the technical field of inorganic new materials, and particularly relates to a preparation method of black yttrium-stabilized zirconium oxide powder. The preparation method comprises the steps: mixing a zirconium oxychloride solution and a yttrium trichloride solution in a proportion; adding an organic acid to generate a gel, adding an ammonia water solution to neutralize and precipitate, washing, filtering and dechlorinating, calcining an obtained filter cake to obtain a precursor powder, adding a coloring agent and a binding agent, ball-milling, sanding and crushing,adding an adhesive and a release agent, uniformly mixing, spraying, granulating and drying to obtain the yttrium-stabilized zirconium oxide powder. The invention relates to the preparation method of black yttrium-stabilized zirconium oxide powder. The process is simple, the yield is high, the produced powder is good in stability, uniform in particle size distribution, good in flowability and stable in shrinkage rate; the sintering temperature is 1350 DEG C, which is 100 DEG C lower than the temperature of common zirconium oxide ceramic production, moulding is convenient, the blank strength ishigh, the processability is good, and black ceramic products prepared from the powder has the advantages of high strength, good toughness, good stability and the like.