The invention discloses a recycling and re-preparation method of silicon-steel level magnesium oxide. The method comprises the following steps: by taking magnesium oxide, a residual waste coating material after silicon steel production, as a raw material, carrying out purification treatment operations of calcination, acidolysis, iron and silicon removal, acidolysis with hydrochloric acid, and the like to obtain a high-purity magnesium chloride solution; by taking the high-purity magnesium chloride solution as a reaction solution, adding ammonium hydrogen carbonate and ammonia water as two precipitants, introducing an organic surfactant at the same time, and carrying out preparation at 40-80 DEG C to obtain a precursor, namely basic magnesium carbonate Mg2(OH)2CO3; and finally, carrying out washing, suction filtration, drying, crushing, and air blowing method calcination to prepare silicon-steel level magnesium oxide. According to the method disclosed by the invention, the wastes which are generated during production of silicon steel and contain a large amount of magnesium oxide are recycled, and high-quality silicon-steel level magnesium oxide with a high specific area and uniform particle size distribution can be prepared by virtue of the processes of purification, two-phase precipitant method precursor preparation, air blowing method calcination and the like.