The invention belongs to the technical field of ceramic powder preparation, and particularly relates to a preparation method of high-dispersion nano-zirconia powder. According to the method, doped yttrium metal modification, preparation of a precursor by a co-precipitation method and hydrothermal crystallization are combined to obtain the high-purity and high-dispersion nano-zirconia powder, impurity ions in the precursor are removed by an ultra-filtration composite membrane technique, crystal form control and particle dispersion functions of a mineralizer are more effectively achieved in hydrothermal reaction, the concentration of the nano-zirconia powder in the precursor is improved, and high-purity and high-yield nano-powder is prepared. The nano-zirconia powder with stable yttrium prepared by the method has a spherical particle shape, is narrow in particle size distribution, good in dispersibility, high in purity, free from aggregation and the like and can be widely applied to high-end biological ceramic materials, and the method solves the problem of brittleness of a current zirconia material in the transition process of crystal forms, so that zirconia ceramics are flexibly and widely applied.