The invention provides a preparation method of an insulating material for electrical equipment. The method comprises the following steps: a, leading waste rubber, epoxy resin and silicone rubber intoan internal mixer, performing banburying on the material till the mixture is molten, then sequentially adding a fire retardant, nanosilicon dioxide and carbon black, and reducing the temperature for banburying, so as to obtain a mixture I; mixing and putting a processing auxiliary material, polyimide, sodium alginate, lignin and an antioxidant into a mixer, heating, and performing ultrasonic oscillation, so as to obtain a mixture II; c, adding silicone oil and a coupling agent into the mixture II, putting the mixture II into a stirrer to perform stirring, then putting the mixture II in a vacuum environment, and performing defoaming treatment, so as to obtain a mixture III; and d. uniformly mixing the mixture I, the mixture III, organic tin and a curing agent, leading the mixture into a single screw to perform extrusion, adding the mixture into a dehydrator to perform dehydration, and putting the mixture into a closed container, leaving the mixture to stand, curing, and forming. The method is simple, short in preparation flow, mainly adopts a waste rubber material, and has certain environmental protection significance.