The invention discloses a coaxial electric drive axle assembly with self-locking and disengaging functions and a working method. The coaxial electric drive axle assembly is capable of preventing wheels from slipping, power separation and coaxial miniaturization. Comprising a stator assembly, a rotor assembly, an axle housing, a planetary gear assembly, an electromagnetic clutch, a self-locking differential assembly, a right half axle and a left half axle, the rotor assembly is provided with an axial inner hole and arranged on the left half axle in a sleeving mode, and the planetary gear assembly comprises a sun gear, a planetary pinion, a planetary bull gear, a gear ring and a planet carrier; the planetary pinion and the planetary bull gear are mounted on the planetary carrier, the planetary pinion and the planetary bull gear are coaxially fixed, the planetary pinion is meshed with the sun gear, the planetary bull gear is meshed with inner teeth of the gear ring, and the gear ring is fixed to the axle housing to form an epicyclic gear train; the electromagnetic clutch is installed on the right side of the planetary gear assembly and used for transmitting power of the planetary gear assembly to the self-locking differential assembly, and the right half shaft and the left half shaft are both matched with the self-locking differential assembly.