The invention provides a heat dissipation coating used for LED lights and a preparation method thereof. The coating is characterized by comprising the following raw materials by weight parts: 45-48 parts of aniline formaldehyde resin, 3-4 parts of a silane coupling agent KH 5503, 32-36 parts of aluminium nitride powder, 4-6 parts of beryllia, 6-8 parts of silicon carbide, 25-30 parts of xylene, 16-18 parts of ethyl acetate, 3-5 parts of aminopropyl triethoxysilane, 2-3 parts of phenol, 2-3 parts of zine stearate, 4-6 parts of aliphatic acid glyceride, 1-2 parts of butyl mercaptan tin, 3-4 parts of bi-propylene tri-amine, 4-6 parts of dibenzyl amine ether and 5-6 parts of a film forming agent. According to the invention, organic silicone resin is used to form film and solidify, and the formed film is excellent in moisture resistant, waterproof, antirust, cold resistant, ozone resistant and weather resistant performances. The coating is anti-aging, large in adhesion stress and good in heat radiation effect, can be used for a long time under 200 DEG C, and has unchangeable mechanical properties. The beryllia and the silicon carbide are added into the raw materials to increase a wear resistant performance of the coating, and the coating can be used for a long time under 200 DEG C.