The invention provides a free-falling double-nozzle powder mixing gas atomizing water-cooling fast-setting metal matrix CBN magnetic abrasive preparing method. The method is characterized in that CBN powder is adopted as hard abrasive of magnetic abrasive, and an alloy composed of iron, silicon, aluminum and copper is adopted as a metal matrix material; upper and lower layer free-falling nozzles are adopted as nozzles, the upper layer free-falling nozzle is a low-pressure mixed powder flow jetting nozzle, and the lower layer free-falling nozzle is a high-pressure gas flow nozzle; water cooling is adopted as a cooling manner, and by adjusting the height of the water level of cooling water in an atomizing and water cooling chamber, the cooling speed of molten metal drops containing the CBN abrasive is controlled, so that the CBN abrasive forms the magnetic abrasive distributed on the surface shallow layer of a magnetic abrasive metal matrix; a spiral mixed powder conveying device is adopted for conveying mixed powder, so that flow of the CBN abrasive is controlled precisely. According to the prepared metal matrix CBN magnetic abrasive, CBN and the metal matrix are combined firmly, the magnetic abrasive has high magnetic abrasive performance, the production technology process is controlled in a programmed manner, product performance is stable, and the method is suitable for scale production.