The invention discloses a method for producing humic acid and salt thereof through the oxidative degradation of young lignite. The method comprises the following steps: carrying out the oxidation reaction of the lignite containing the humic acid and aqueous hydrogen peroxide solution; after the reaction, obtaining water soluble fulvic acid through centrifugal separation, supernatant filtration, concentration and drying; adding alkali into the fulvic acid to prepare a fulvic acid salt product; carrying out the alkaline extraction and centrifugal separation of the residue deposit of the production of the fulvic acid, adding acid into the supernatant till the pH value is 1 to 2, carrying out a reaction at an increased temperature or room temperature, carrying out centrifugal separation after the reaction is finished, and obtaining purified ulmic acid after precipitation and drying; and directly concentrating and drying the supernatant in the previous step to obtain the humate. The method can improve the yield of the fulvic acid and total humic acid in the young lignite, and simultaneously increase the active group in the humic acid. The method can be used for producing fulvic acid, fulvic acid salt, ulmic acid and ulmic acid salt products. In particular, the method puts an end to the environmental pollution caused by the nitric acid which is taken as an oxidation degradation agent. In addition, the method has a short technological line, low cost, simple requirements on equipment, and moderate conditions. The method which can be applied to the industrialized production has good application prospect.