The invention discloses a quantum dot light emitting diode and a preparation method thereof. The quantum dot light emitting diode comprises a substrate, an anode, a hole transport layer, a quantum dot light emitting layer, an electron transport layer and a cathode in sequence from bottom to top, wherein the materials of the quantum dot light emitting layer include quantum dots and an amorphous insulating compound. The quantum dot light emitting layer is prepared by forming a film through spin coating of solution of the amorphous insulating compound containing the quantum dots, in order to weaken the electric field intensity at the quantum dot light emitting layer. Therefore, the possibility of electron recombination is improved while the electron and hole injection barriers are reduced, and thus, the efficiency and service life of QLED devices are increased effectively.