The invention discloses Mg-Li-Al-Zn-Y-based cast magnesium-lithium alloy and a heat treatment method thereof. The magnesium-lithium alloy comprises, by mass, 5-10% of Li, 2-4% of Al, 1-3% of Zn, 1-2%of Y, 0.2-0.8% of Zr, 0-0.05% of Ti, and the balance Mg and unavoidable impurities. By introducing Al and Y to form an Al2Y heat-resistant strengthening phase, the strength and thermal stability of the magnesium-lithium alloy can be significantly improved; meanwhile, by adding Zn, solid solution strengthening can be promoted; by adding trace Zr and Ti, the effect of refining grains can be achieved. The invention also relates to the heat treatment method of the magnesium-lithium alloy. The method comprises the steps of two-stage solid solution treatment and aging treatment, wherein solid solution treatment is performed at 280-420 DEG C for 2-8 hours, then solid solution treatment is performed at 200-270 DEG C for 0-16 hours, and water cooling is performed; finally, aging is performed at 50-150 DEG C for 0-40 hours, and air cooling is performed. The magnesium-lithium alloy is simple in process and can be applied to the fields of aviation, aerospace, military industry, electronics and thelike.