The invention provides hollow fancy loop multifunctional health-care yarn and a preparation method thereof. The yarn comprises lotus root fibers, lyocell fibers, bamboo charcoal fibers, Clean cool fibers, water-soluble vinylon fiber filaments, PTT shape memory fiber filaments, anti-ultraviolet polyester fiber filaments, cashmere fibers and mohair fibers, or comprises stainless steel fiber filaments, mint fibers, long stapled cotton fibers, water-soluble vinylon filaments, colorful negative ion multifunctional viscose filaments, bamboo charcoal fibers and coconut carbon fibers. The yarn prepared through the preparation method has excellent in hygroscopicity, natural, antibacterial, resistant to odor and capable of absorbing moisture and discharging sweat, has deodorization and anti-aging functions and the like, also has excellent radiation resistance, anti-static performance and a negative ion emission function, enhances the immune function, activates cells, promotes metabolism, has deodorizing performance, prevents mites, odor and insects, generates negative ion characteristic and is resistant to water, oil and dirt, and fabrics are prevented from being influenced by various harmful bacteria and pollution.