The invention discloses a cold-resistant and crack-resistant low-smoke, halogen-free and fire-retardant polyolefin sheath material with thermoplasticity and a preparation method thereof, and belongs to the technical field of cables. The cold-resistant and crack-resistant low-smoke, halogen-free and fire-retardant polyolefin sheath material is prepared from the following components in parts by weight: 20-60 parts of linear low density polyethylene (LLDPE), 20-40 parts of ethylene vinyl-acetate copolymer (EVA), 10-20 parts of styrenic block copolymer (SEEPS), 10-20 parts of alpha-ethylmescaline (AEM), 50-100 parts of magnesium hydrate, 20-50 parts of aluminum hydroxide, 10-20 parts of clinoptilolite, 10-20 parts of borate whisker, 1-5 parts of antioxidant and 2-6 parts of lubricating agent. The method comprises the following steps: firstly, adding the borate whisker, the clinoptilolite and 1% of silane coupling agent to a high-speed mixer and mixing; adding the residual components to the high-speed mixer, and then extruding and pelletizing the mixture in a two-stage pelletizer. The cold-resistant and crack-resistant low-smoke, halogen-free and fire-retardant polyolefin sheath material meets the requirements of an embrittlement experiment at low temperature of minus 40 DEG C and a crack-resistant experiment at high temperature of 150 DEG C, and furthermore has excellent flame retardant property.