The invention belongs to a building internal wall coating and a preparing method thereof and relates to the field of coating production. The coating prepared through the method comprises 6-9 parts of putty, 3-6 parts of modified drift beads, 30-60 parts of waterborne emulsion, 20-30 parts of titania nanonpowder, 1-5 parts of film formation auxiliaries, 0.2-0.8 part of dispersing agents, 0.1-0.2 part of antifoaming agents, 0.1-0.2 part of wetting agents, 10-20 parts of fillers, 1-5 parts of adsorbent, 5-25 parts of air microcapsules and 1-5 parts of plant fiber. The putty comprises, by weight, 30-50 parts of light weight fireclay brick , 10-15 parts of perlite, 6-9 parts of high-alumina cement, 12-18 parts of mullite, 10-15 parts of bentonite, 2-4 parts of szaibelyite, 1-3 parts of poly (carboxylic acid ammonium salt, 3-5 parts of silicone acrylic emulsion, 5-8 parts of silica powder, 5-10 parts of jute fiber or viscose, 8-18 parts of water glass, 4-6 parts of dispersible emulsion powder and 10-15 parts of composite suspension liquid composed of aluminum oxide sol and silicon dioxide sol according to the mass ratio of 1:1. The building internal wall coating produced through the method can improve the indoor air quality effectively and lower energy consumption and has energy-saving and environment-friendly functions.