The invention relates to a halogen-free flame-retardant thermoplastic elastomer sheath material and a preparation method thereof. The halogen-free flame-retardant thermoplastic elastomer sheath material comprises the following components: a styrene thermoplastic elastomer, polypropylene resin, a compatilizer, filling oil, ethylene-propylene rubber, a flexibilizer, a halogen-free flame retardant, polyphenyl ether resin, a smoke suppressant, an antioxidant and a lubricating aid. The preparation method comprises the following steps: 1) filling the styrene thermoplastic elastomer with the fillingoil; 2) after oil filling is completed, adding the styrene thermoplastic elastomer and other components into a high-speed mixer for mixing; 3) adding the mixture into an internal mixer for internal mixing; and 4) feeding the internally mixed mixture into a twin-screw extruder, and performing stranding and pelletizing at 160-200 DEG C. The halogen-free flame-retardant thermoplastic elastomer sheathmaterial disclosed by the invention is low in processing temperature and low in hardness, has good scratch resistance and flame retardance, still has a cable folding and winding function in a low-temperature environment, is excellent in comprehensive performance, and is suitable for cables for electric automobile charging piles.