The invention relates to a stannic oxide pressure sensitive resistor composite powder material with excellent properties, and a preparation method thereof. The powder material is prepared from SnO2, Co2O3, Bi2O3, Pr2O3 and Y2O3. The preparation method comprises the following steps: by adopting a chemical coprecipitation method and by taking absolute ethyl alcohol as an organic solvent and polyethylene glycol as a dispersing agent, adding stannic chloride, tribismuth chloride, tricobalt chloride, praseodymium nitrate and yttrium nitrate, dissolving the components into a transparent solution in a constant temperatue water bath environment, dropwise adding an ammonia water solution used as a precipitator into the transparent solution at a uniform speed, precipitating, filtering, washing, drying, grinding and calcining, thereby obtaining the stannic oxide pressure sensitive resistor composite powder material. The stannic oxide composite powder with excellent properties is essential to manufacturing of high-performance pressure sensitive resistors. The stannic oxide composite powder prepared by using the method disclosed by the invention has the advantages of small particle size, uniform modified oxide distribution and narrow particle size distribution. The stannic oxide pressure sensitive resistor composite powder material disclosed by the invention is simple in preparation method, precise and controllable in component, relatively good in product morphology consistence and excellent in electric property.