The invention discloses a full-automatic capacitance taping machine and a machining method thereof. The full-automatic capacitance taping machine comprises a rack, a first metal detection module, a transposition module, mechanical arms, a mechanical arm control table, a first photoelectric detection module, a first tape wheel, a second tape wheel, an air cylinder, a second metal detection module, a second photoelectric detection module, a third metal detection module, a sliding tape wheel, a sliding groove, two sets of push rods, a tape folding module, a counting tape wheel, a third tape wheel, a fourth tape wheel, a fifth tape wheel, a perforating unit and a capacitance tape. According to the full-automatic capacitance taping machine and the machining method thereof, bulk capacitance elements are mainly formed and taped according to the requirements of clients. The full-automatic capacitance taping machine is simple in structure, easy to operate, high in automation degree and accurate in detection, and the wrong taping probability is greatly decreased relative to current most products.