The invention discloses a downhole casing twin-stage cone expansion device and an operating method thereof. The downhole casing twin-stage cone expansion device comprises a first-stage expansion cone,a second-stage expansion cone, a central tube, a connecting outer tube, a limiting mechanism, a top check block and the like; and the central tube is mainly composed of a spline shaft, a double-deckinner tube, a connecting inner tube and the like, and the double-deck inner tube comprises a central inner tube and a central outer tube. When an expansion casing is subjected to first-stage expansion, the first-stage expansion cone together with the connecting outer tube and the top check block move up along the central tube, and the first-stage expansion is completed after limiting displacement;when second-stage expansion occurs, the second-stage expansion cone, the central tube and the limiting mechanism move up relative to the first-stage expansion cone, and single-stroke expansion ends after second-stage limiting displacement; and hydraulic expansion of the expansion casing is completed in stages by repeating twin-stage expansion stroke until the expansion casing is fully expanded. According to the downhole casing twin-stage cone expansion device and the operating method thereof, the expansion force of the casing can be effectively reduced at downhole, the possibility of expanding the expansion casing can be achieved to a larger extent, and construction risks are reduced; and the downhole casing twin-stage cone expansion device can be used in the expansion casing operation inthe fields of expansion casing subsidy well repair, well completion, and well drilling and plugging and the like.