The invention discloses flame-resistant and environment-friendly expanded plastic and a preparation method thereof. The flame-resistant and environment-friendly expanded plastic is prepared from the following raw materials: a PPA copolymer, polycaprolactone PCL, plasticized starch, a halogen-free flame retardant, plant powder, a cyanobacteria fiber, sorbitol, a foaming agent ADC, sodium lactate, sodium citrate, ammonium bicarbonate, zinc oxide, diisononyl phthalate DINP, 2-ethylhexyl epoxystearate, a titanate coupling agent NDZ-TTS, nano-montmorillonite, blanc fixe, mica powder and an antioxidant BHT, wherein the PPA copolymer is obtained by reacting 6-aminocaproic acid and gamma-aminobutyric acid at the molar ratio of (5-10) to (0.5-4). According to the flame-resistant and environment-friendly expanded plastic disclosed by the invention, carbon dioxide and water can be completely degraded under the action of light/microorganisms; environmental pollution is avoided; and the flame-resistant and environment-friendly expanded plastic has the advantages of excellent flame retardant property, high tensile strength and high compression resistance.