The invention discloses an excavator moving arm potential energy classified recovery and release device and a method thereof. The device comprises an engine, a pilot pump, a main pump, an operation handle, five pressure sensors, a moving arm locking control valve, a hydraulic control reverse valve, two shuttle valves, a moving arm locking main valve, two release valves, a moving arm locking pilot valve, two energy accumulators, two recovery valve moving arm oil cylinders, four one-way valves, a controller, a safety valve, a stop valve, a high-pressure release valve, a back pressure valve and an auxiliary motor. The device judges if a moving arm has a load through acquiring pressure signals in each point, so that the high-pressure energy accumulator is used for recovering the load when the moving arm is high in load, the low-pressure energy accumulator is used for recovering the load when the removing arm has no load, the potential energy of the moving arm under different working conditions can be totally recovered, and such defects as throttling loss caused by a traditional method or a proportional direction valve, a throttle valve and a speed adjusting valve, weak control characteristic by single energy accumulator and incapability of totally recovering the power reducing potential energy are prevented; and the device has such characteristics as high oil saving rate, good controllability and no influence on working efficiency of a traditional machine.