The invention discloses an aerated concrete block and a preparation method thereof. The aerated concrete block is prepared from the following components: 250-320kg of cement, 350-400kg of lime, 1400-1600kg of silica sands, 1.45-1.6kg of aluminium powder, 0.195-0.205kg of foam stabilizers and water. The preparation method comprises the following steps: raw material preparing, metering, stirring, pouring into molds, standing and procuring, demolding, lifting to a cutting part for cutting, steam pressure curing in a kettle and finished product warehousing. The block has the advantages of light weight, good thermal insulation property, processability, convenient construction, wide raw material sources, high preparation efficiency, low preparation energy consumption, environment-friendliness and good fireproofing and soundproofing properties, specifically, the bulk density of the block is 500-700kg / m3, which is equivalent to 1 / 3 of the bulk density of the clay bricks; the block is providedwith plentiful pores and micropores inside, thus having good thermal insulation property; the block dispenses with coarse aggregates, thus having good processability, being capable of being sawed, planed, drilled and stapled, being capable of being bonded by bonding materials and providing favorable conditions for building construction.