The invention provides a water-permeable brick with artificial carbonized steel slag pellets as aggregates and a preparation method thereof, belonging to the technical field of green building materials. The water-permeable brick comprises a base layer and a surface layer, wherein the surface layer is located on the base layer; the base layer is made of continuously graded artificial carbonized steel slag pellet aggregates; and the surface layer is made of fine aggregates obtained by crushing and sieving carbonized steel slag bricks and formed after filling and leveling of the fine aggregates.The water-permeable brick comprises the following components by weight: 60 to 70% of artificial carbonized steel slag pellet aggregates, 5 to 10% of the fine aggregates obtained by crushing and sieving carbonized and cured steel slag bricks and having a particle size of no more than 4.75 mm, 15 to 20% of steel slag micropowder, 4 to 5% of a reinforcing agent and 4 to 5% of tap water. According tothe invention, through large addition amount of steel slag, industrial waste residues are greatly consumed; meanwhile, industrial waste gas CO2 is used as a raw material in the process of carbonization and curing, and the reaction of the CO2 with steel slag products in a carbonization kettle is an exothermic reaction, so no external heat source is need; and the advantages of waste utilization, carbon sequestration, energy conservation, emission reduction, simple preparation process, low equipment requirements, short production cycle and low cost are obtained.