The invention discloses a zirconia ceramic cylinder liner material and a preparation method thereof, and the material comprises the following components: 60-80 wt% of ZrO2, 20-30 wt% of Al2O3, 3.2-4.3 wt% of Y2O3, 3-4.2 wt% of TiO2, and 1.5-2.1 wt% of La2O3. The method prepares the ZrO2 ceramic cylinder liner material by using Al(NO3)3, ZrOCl2.8H2O, Y(NO3)3, TiCl4, LaCl3 as raw materials, using C6H12N4 as a precipitant, and by a coprecipitation method. Uniform mixing of each component at molecular level is effectively realized. The disadvantage of poor uniformity of the mixing of each component in the material due to routine ball milling mixing technology is overcome; the prepared zirconia ceramic powder has the characteristics of uniform dispersion, homogeneous particle size, and good fluidity; low-temperature sintering is realized; the ZrO2 composite ceramic material green body prepared by the method has bending strength of 980-1200 MPa, fracture toughness of 8.3-10 MPa.m1 / 2, vickers hardness of 2 GPa-14 GPa after calcination at 1330-1380 DEG C; the process is simple, and is applicable to large-scale production.