The invention discloses a calcination production line and a calcination method for industrial by-product gypsum. The calcination production line comprises a feeding mechanism, a metering mechanism, an inclined conveyer belt, a scattering mechanism, a drying pipeline, a gas-solid separation tower, a negative pressure fan, a screw feeder, a horizontal-type rotational calcining kiln, a burning furnace, a finished-product conveying mechanism, a material storage tower, a temperature measurement display system and a PLC (Programmable Logic Controller) control system, wherein the drying pipeline is arranged vertically, the middle lower part of the drying pipeline is connected to a discharge port of the scattering mechanism, the upper end of the drying pipeline is connected to a gas inlet of the gas-solid separation tower, a gas outlet of the gas-solid separation tower is connected to a gas inlet of the negative pressure fan, a discharge port of the gas-solid separation tower is connected to the screw feeder, a discharge port of the screw feeder is arranged in the rotational calcining kiln, the burning furnace comprises a primary burning furnace and an auxiliary burning furnace, and multiple U-shaped heat exchange pipes are fixed in the rotational calcining kiln. The calcination method comprises the following steps of: charging, metering, scattering, drying, gas-solid separating, calcining, discharging, finished-product conveying, storing and cooling; and the calcination production line has the advantages of high automation degree, stable finished-product quality and lower energy consumption.